The dollar rose on Wednesday as upbeat US economic data strengthened prospects that expected US Federal Reserve monetary easing measures may be less aggressive than previously thought. In trading here, the dollar climbed to 81.89 yen from 81.43 late in New York on Tuesday, having pulled away from a 15-year low level of 80.41 that was struck on Monday. The European single currency meanwhile slid to $1.3809 from $1.3857 on Tuesday. Next week's Federal Open Market Committee meeting is expected to unveil new stimulus measures to boost the country's jobless recovery, dealers said. And the first estimate of third-quarter US gross domestic product, due on Friday, could play a key role in the central bank's decision on quantitative easing (QE) measures. "The US dollar regained some ground on the back of slightly better than expected consumer confidence and Richmond Fed numbers for October yesterday," said CMC Markets analyst Michael Hewson. "With US GDP numbers looming on Friday, … [Read more...] about Dollar advances on US Fed monetary outlook
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Asian stocks rebound after US Fed puts rates on hold
Asian markets have rebounded after the US Federal Reserve said it will keep interest rates on hold and Wall Street had its best day in two years. The decision by the US central bank to keep rates at current levels until at least 2013 helped stem one of the biggest sell-offs in recent years. Japan's Nikkei 225 index gained 2 percent, the Republic of Korea's Kospi rose 4 percent and Australia's ASX added 2 percent. However, analysts say markets will remain choppy amid global growth fears. They said that many investors were still concerned about global growth and the fact that the Fed did not announce any new measures to boost expansion, such as an economic stimulus package. … [Read more...] about Asian stocks rebound after US Fed puts rates on hold
Bernanke wins new term as Fed chief
WASHINGTON, Jan. 28 (AFP) - Federal Reserve chief Ben Bernanke won confirmation to a second term as the US central banker, despite sharp attacks on his role before the 2008 financial meltdown and in its aftermath. After a bitter debate that roiled global stock markets, the US Senate voted 70-30 to approve Bernanke after easily dispatching an effort to block the nomination days before his term was to expire on Sunday. President Barack Obama declared himself "gratified" by the vote and said Bernanke was needed because "while the worst of the storm has passed, its devastation remains and we have a lot of work to do to rebuild our economy." Opposition to Bernanke -- who drew a historic number of "no" votes -- had led Obama and top aides to work the phones to court wavering Senators gripped by election-year populist pressures over the battered US economy. His supporters said the central banker, 56, had pulled the world's richest economy back from the brink of a collapse like the Great … [Read more...] about Bernanke wins new term as Fed chief
Japan launched economic stimulus package to boost the economy – risk of “currency war”
Bank of Japan (BoJ) surprised the market by its decision to launch stimulus package to boost the economy, doing the same way of the US and Euro for a past few weeks. BoJ decided to pump 10 thousand bil to expand its property purchase program, extending the validity till the end of 2013 due to the difficulties in global and local economy. The action immediately decreases the price of yen, causing a lot of wondering if the world will witness another currency war. Analyst Micheal Hewson of CMC Markets said: "worrying that yen's rise continues to cause difficulties to Japanese policy makers and economic activities begin to go down, BoJ decided to reconsider yen's rise management methods, which badly affected export business of the country. The 3rd Quantitative Easing (QE3) of FED last week did not benefit the Japanese when the yen value was increased and BoJ decided to take action shortly in order to reduce the impact of FED's action on the yen as well as stimulate economic growth. … [Read more...] about Japan launched economic stimulus package to boost the economy – risk of “currency war”
Gold slumps, dollar slips after FED announcement
The local gold price has dropped by VND610,000 ($28.8) a tael following world trend after Federal Reserve (Fed) chairman Ben Bernanke said there would be no immediate quantitative easing on Thursday. As of 9:30 am, gold bullions produced by Saigon Jewelry Co, the biggest Vietnamese gold refiner and trader, were quoted at VND41.5 million a tael and VND41.8 million a tael for bid and ask, respectively. Meanwhile, the bid and ask price of SJC gold bullions in Hanoi were also trading at VND41.5 million a tael and VND41.82 million a tael, respectively. Rong Vang Thang Long (Thang Long Golden Dragon) refined by the Hanoi-based Bao Tin Minh Chau Co were quoted at VND40.55 million a tael and VND40.85 million for bid and ask, respectively. At the same time, spot gold was quoted by Kitco.com at $1,567.40 an ounce, and is still on a downward trend. With the current exchange rate, plus additional fees and taxes, the local gold price was VND2.1 million a tael costlier than its world … [Read more...] about Gold slumps, dollar slips after FED announcement