CURRENCY TRADING INFOR

Does a Declining Dollar Spell Doom?

malibusac — Sat, 13 Sep 2008 19:12:23 +0000

When the dollar is low, you have to spend more dollars to buy a certain amount of foreign currency. Because prices in foreign countries tend to stay in line with their local currencies, a falling dollar generally makes buying things abroad more expensive.

Back home in the United States, the effects are a little more subtle. For domestic businesses that don’t have to import supplies or materials for production, the impact of currency fluctuations is relatively small. On the other hand, for businesses that rely on international trade, changes in the values of foreign currency can have a huge effect on their profitability. Foreign-based businesses find that the prices they charge in dollars translate to a smaller amount of foreign currency. In response, they can either accept lower profits, potentially hurting their stock prices, or increase their dollar prices to compensate for the adverse currency move, which can potentially hurt their sales.

Taiwan eases China currency rules

malibusac — Thu, 11 Sep 2008 23:25:55 +0000

They will also be available at foreign-currency trading counters at tourist hotels, airports and gift stores.

Tourist influx

The move comes just a few days before the start of regular direct weekend charter flights between Taiwan and China – marking a new chapter in relations between the two political rivals.

But the step is also considered a virtual necessity, since from next month up to 3,000 Chinese tourists will be allowed to visit Taiwan each day.

The move will provide a legal channel for them to exchange their money for local currency to spend in Taiwan.

The absence of a currency exchange service between Taiwan and China had led to rampant black market currency trading.

Under the new regulations, anyone will be able to buy or sell Chinese yuan at authorised institutions, although the government has initially set a cap of 20,000 yuan – just under $3,000 (1,500) – for each transaction.

BlackRock To Acquire Impact Investing

malibusac — Tue, 09 Sep 2008 11:12:15 +0000

“We look forward to incorporating Impact’s functionality into Aladdin’s analytics and trading capabilities and are particularly excited about the enhanced equity analysis and portfolio visualization capabilities this will provide – further strengthening the platform’s multi-asset capabilities,” commented Robert Goldstein, Managing Director and head of Relationship Management for BlackRock Solutions. “We believe the combination will provide tremendous value to both Impact and BlackRock Solutions clients. Given that BlackRock is among Impact’s oldest clients in support of our asset management business, this was a very natural functional and organizational fit.”

“Impact recognized that we needed a partner to expand the scope of our capabilities and continue to meet the growing demands of our clients,” said Nigel Allfrey, Chief Executive Officer of Impact Investing.

Supports getting violated by bad global

malibusac — Sun, 07 Sep 2008 10:22:32 +0000

We had a catastrophic fall after the Fitch currency downgrade came in.

Global things turned quite bad as well and we had a very, very big sell off. Sensex was 650-points down and finally closed at 12,670. Nifty was down 180 points all the way to 3,860. We have pretty much come back to the 3,850 level. This is a 15-month low in terms of a closing for the market. There were not too many places to hide.

Banks got hit the hardest after that currency downgrade. We saw ICICI Bank, and HDFC Bank losing 8-10% apiece, as the Nifty bank index was down very sharply, nearly 8%. All the familiar sectors- the rate sensitives – whether it was capital goods led by the BHELs, GMRs, JP Associates and Punj Lloyds of the world, the real estate space led by Unitech and DLF and with all the other midcaps in tow and the metals space as well.

Sanford shares a bumper catch

malibusac — Fri, 05 Sep 2008 08:22:54 +0000

The increase is despite the company facing strong headwinds from both the currency and soaring fuel prices. Chairman Bruce Cole told the shareholders meeting the high exchange rates “continue to inflict a baleful influence.” The company’s average currency rate in the latest six months was $US0.77.2 compared with $US0.68.9 in the same period a year earlier and its fuel costs rose 24% – the latter increase was contained by efficiency gains since fuel prices rose an even steeper 50%.

Barratt still doesn’t think the first- half result was adequate. “I would like to see further improvement.”

If the analysts are correct, such an improvement is likely. Betting on continuing strong fish prices and a decline in the New Zealand dollar, just about all of them have a buy recommendation on the stock, despite the heady share price gains already achieved.

State Street Corporation Achieves Record Revenue of $2.7 Billion

malibusac — Wed, 03 Sep 2008 22:19:15 +0000

Logue added, “In these markets, we continue to experience strong year-over-year results in securities finance and trading, as well as net interest revenue. We are pleased to achieve positive operating leverage on both a quarter-to-quarter and on a year-over-year basis, the fifteenth consecutive quarter as measured on a year-over-year basis.”

Logue concluded, “Our strong results of the quarter, plus the benefit of the $2.8 billion in equity capital that we issued in early June, enhanced the Corporation’s solid capital position. Given the strength of the first half of the year, we now expect both growth in operating earnings per share to approach the high end of the 10 to 15 percent range and achievement of operating return on equity to approach the high end of the 14 percent to 17 percent range in 2008.

Rand in position to put on more altitude, says analyst

malibusac — Mon, 01 Sep 2008 16:17:44 +0000

However, Glynos said the higher interest rate differential between South Africa and trading partner countries would support the local currency. The US Federal Reserve’s target Fed funds rate is 2 percent, while the South African Reserve Bank’s official repo rate is 12 percent. .

The BBVB reports that open joint stock companies Bank Avrasiya and

malibusac — Sat, 30 Aug 2008 12:15:59 +0000

On May 1, 2008 BBVB finished successfully switching of the users to a new trading and settlement system. Almost all the member of the BBVB currency section have been connected to it through more than 50 trade and information terminals. For study of new capacities of e-system and improvement of work skills in its new interface BBVB has organized special training courses.

Being the first exchange electronic trading system in the Trans-Caucasus region, for the past six years from the day of its commissioning BEST has become an integral part of currency and money market of Azerbaijan. The system built on the basis of principle of universalism in rendering exchange services is a kind of modern platform for complex management with liquidity and risks of banks. BEST allows domestic banks not only to carry out converting transactions with foreign currencies, but also to conduct placement/borrowing finances, operating settlements on exchange deals, re-distribute limits and monitor segments of country financial market on-line.

Bangkok gold price surges to record high amid Mideast tension

malibusac — Thu, 28 Aug 2008 16:44:44 +0000

The baht weight, with the same name as the Thai currency, is a measurement unit for gold unique to Thailand. One baht equals to 0. 487 troy ounces.

The investors were also worried about the declining U.S. dollar and economic troubles in the United States after the U.S. Federal Reserve had decided to bail out Indy Mac, one of the country’s mortgage lender giants.

In addition, he said, the baht’s weakening had fueled the value of gold in Bangkok though the price of gold abroad stayed unchanged at around 960 dollars per ounce.

Jitti said the local price of gold ornaments is likely to continue to rise and surpass the level of 16,000 baht (some 475 dollars) per one baht weight of gold this year if the Thai currency continues to weaken.

At present, gold ornaments are traded at 14,935.60 baht (443 dollars) per baht weight for the purchase price and 15,650 baht ( 465 dollars) for the selling price, and gold bars at 15,150 baht ( 450 dollars) for the purchase price and 15,250 baht (453 dollars) for the selling price.

Christopher Cox’s Shorts

malibusac — Tue, 26 Aug 2008 07:14:14 +0000

If this is related to the current crisis in the credit markets, not to mention the currency markets, all we can say is, this is a time when the markets need to be at their freest.

We’re tempted to propose that the government be permitted to go ahead and restrict short selling in shares of Goldman, Lehman, Merrill, and Morgan Stanley so long as those four firms disgorge all of the billions in profits that they earned over the past decade on the short end of trades. But why should those firms be allowed to pay out money to insulate themselves from the price signals the market wants to send in respect of their equity? It’s bad enough that Goldman, which earned $11 billion in profits last year and paid its chief executive $74 million, got a $650 million taxpayer subsidy for its new headquarters.