The Asian market was trying to make sense of the sharp currency move given there was little economic news overnight to prompt it.
Such has pressured the Euro currency and given a lift to the U.S. dollar index Wednesday.
FORBES: Comex Gold Weaker As Key "Outside Markets" Mildly Bearish
One of them says that if inflation-adjusted interest rates decline in a given country, its currency is likely to decline.
Those loans are impossible to repay given the rupiah's volatile swings - the currency was trading at 11, 500 to the U.S. dollar June 3 (versus 2, 400 to the greenback in July last year).
On any given trading day, the currency is allowed to move 0.5% above or below the price set by the central bank, an improvement from the 0.3% band that existed until May 2007.
The Miami-based company issued guidance of a 2% to 3% net revenue increase for the full year, but given the shift in currency exchange rates, Carnival expects revenue yields on a current dollar basis to be flat for fiscal 2010 compared to 2009.
In particular the Germans, with traditionally the strongest economy and currency in Europe, were loth to sign up to monetary union with Italy, given its tradition of mountainous debts, a weak currency and inflation.
Trends have given way to volatility, and the potential for more currency volatility is continuously increasing.
Given the chance to attack Mr Blair over the single currency at prime minister's question time on October 29th, he chose instead to raise education.
Mr. Hong : In the immediate future, we're likely to see a good deal of currency volatility, given the turmoil in Europe.
WSJ: Pimco's Guiding Asia-Pacific's Investor Evolution: Ki Myung Hong
This aversion to flexibility is doubly unfortunate given the approach of the single currency.
The instruments were given to the agency in return for wages and then exported for hard currency.
In overnight news, the Euro currency and European stocks were given a boost when Greece announced it would buy back up to 10 billion Euros of its outstanding bonds at a price from 30 to 40 cents on the dollar.
FORBES: A.M. Kitco Metals Roundup: Comex Gold Up on Bargain Hunting and on Lower U.S. Dollar Index
The new measures make hedging more complex, but it also has an impact on currency speculation, something the government said it wanted to rein in as much as possible given the global weak dollar and its impact on Brazil.
And in fact, in the Dodd-Frank statute itself, not only was there no effort to make the Office of the Comptroller of the Currency subject to a multimember commission as its governing structure, but the OCC was actually given additional authorities.
Fiat means by decree, and under the gold standard, a given currency is forced on the population by law, regardless of what anyone desires, needs, or judges to be best.
This was to allow them to qualify for the first intake into the single currency, an achievement many pundits considered impossible given the country's past extravagances.
Mr. Maung Maung Win conceded that outside influence over the currency could be a problem, given Myanmar's many border crossings with neighbors, which make it hard to monitor capital flows.
Given the lack of transparency in Indonesian business culture, few believe Jakarta has the discipline to abide by a currency board's simple but absolute rules -- print no more money than can be backed by hard currency and let interest rates rocket as high as the market demands.
At the same time, serious consideration should be given to creation of a Contingency Energy Fund (CEF) that could be drawn upon (like the emergency currency stabilization package and food aid being offered by Western nations).
应用推荐