DOLLAR UPDATES

2009-07-16T01:29:00.000-07:00

MARKET ALERT ON JULY 16 THURSDAY

2.00 PM IST

USDINR MCX SX/NSE Cld TEST RS 48.95 LEVELS

SUPORT AT RS 48.75 LEVELS.

BUY IN THE RANGE OF 48.75.

update

2009-02-09T02:03:00.000-08:00

MARKET LERT AT 3.30 PM

SELL USD INR NSE-CDS FEB IN THE RANGE

OF 48.68 - 48.65, TARGER 48.45, SL 48.75.

UPDATES

2008-12-14T20:50:00.000-08:00

TECHNICALS FOR DECEMBER 15

MCX DECEMBER NATURAL GAS

SHORT TERM : BEARISH

LONG TERM : BEARISH

SUPPORTS : 264, 260, 255

RESISTANCES ; 266, 270, 273

STAY SHORT AT RESISTANCES

UPDATES ON NOV 12 2008

2008-11-11T21:23:00.000-08:00

NOV 12 WEDNESDAY

USD / INR : 48.43

INR opened weak and trading above

crucial resistence of Rs 48.20 levels.

If market sustains above these levels it may test

Rs 49 and 49.30.

UPDATES ON NOV 4 2008

2008-11-03T22:05:00.000-08:00

NOV 4 TUESDAY

Yen Rises on Speculation Global Rate Cuts May

Curb Carry Trades .

The yen rose against higher-yielding currencies on speculation

a series of global interest-rate cuts will make it less attractive

to buy overseas assets using funds from Japan.

The currency gained against the Australian dollar after the

Reserve Bank of Australia lowered borrowing costs by three

- quarters of a percentage point to 5.25 percent today. It also

advanced versus the euro and the British pound, before

expected rate reductions by the European Central Bank

and the Bank of England this week.

The euro fell for a fourth day against the dollar on speculation

the European Central Bank will lower rates to cushion the

impact of a slowing economy. The ECB will trim its benchmark

rate by half a percentage point to 3.25 percent when it

announces a policy decision on Nov. 6, according to a

Bloomberg survey.

The Bank of England will lower its key interest rate to 4 percen

t from 4.5 percent at a meeting ending Nov. 6, according to

economists surveyed by Bloomberg. The Federal Reserve

reduced its target lending rate by a half-percentage point to

1 percent on Oct. 29. Central banks in China, Taiwan, Hong

Kong, India and the Middle East also cut borrowing costs in

the past week as policy makers race to avert a global recession.

The U.S. economy, the world's biggest, shrank at a 0.3 percent

annual pace in the third quarter and an industry report yesterday

showed manufacturing contracted in October at the fastest rate

in 26 years. In Japan, the world's second-largest economy, the

Nikkei 225 Stock Average last month reached its lowest level

since 1982.

UPDATES ON OCT 31 2008

2008-10-30T22:18:00.000-07:00

OCT 31 FRIDAY

Yen Rises After BOJ Lowers Interest Rates by Less

Than Expected .

The yen rose against the dollar after the Bank of Japan

lowered interest rates by less than economists had

forecast.

The yen also gained against the euro after the BOJ lowered\

its benchmark rate to 0.3 percent from 0.5 percent,

compared with forecasts for a cut to 0.25 percent. The

yen slumped the most since 1974 versus the dollar on

Oct. 28 after the Nikkei newspaper said policy makers

were leaning toward lowering rates.

Against the dollar, the yen rose to 97.77 at 2:01 p.m. in

Tokyo from 98.61 yesterday. The yen was at 125.26

versus the euro from 127.31. The euro traded at

$1.2809 from $1.2915. The yen may rise to 90 per

dollar next week, Yoshida said.

UPDATES ON OCT 29 2008

2008-10-28T22:30:00.000-07:00

OCT 29 WEDNESDAY

USD / INR expected to trade in the range of

49.48 to 50.10..

INR if strengthens below 49.50 levels , it may

take correction upto 48 to 47.40 levels.

UPDATES ON OCT 24 2008

2008-10-23T21:52:00.000-07:00

OCT 24 FRIDAY

USD / INR created a high of of 50.03.

If INR sustains above the crucial 50 level ,

it may test 55 level in the short run .

INR range 50.50 to 49.75.

UPDATES

2008-10-22T21:17:00.001-07:00

TECHNICALS FOR OCTOBER 23

USD/ INR 49.77 INR INCHING TOWARDS 50.00

INR EXPECTED TO TRADE IN RANGE 49.3 TO 50.

IF MARKET SUSTAINS ABOVE THESE LEVELS ,

INR MAY TEST RS.55 LEVELS.

UPDATES ON OCT 23 2008

2008-10-22T19:39:00.000-07:00

OCT 23 THURSDAY

Euro Falls to Lowest Since 2003 Against Yen as Stocks Plunge .

The euro fell to the lowest level since January 2003 against

the yen as global stocks plunged, encouraging investors to

cut holdings of higher-yielding assets funded in the

Japanese currency.

The 15-nation currency dropped below $1.28 for the first time

since November 2006 yesterday and the British pound

tumbled to a five-year low on bets Europe's central banks

will cut borrowing costs as the global economy heads for a

recession. The Brazilian real and the Russian ruble dropped

against the dollar as speculation Argentina will default

reduced demand for emerging-market assets.

The dollar advanced against 15 of the 16 most-active currencies

on speculation U.S. investors will repatriate funds held in

overseas stocks and bonds on concern the global economy

will slow further.

The Dollar index traded on ICE futures in New York, which

tracks the greenback against the currencies of six major

trading partners, rose to 85.710 from 85.370 yesterday.

It earlier reached 86.070, the highest since October 2006.

UPDATE

2008-10-21T21:05:00.000-07:00

TECHNICAL UPDATE FOR OCTOBER 22

USD / INR CMP 49.28.

INR BROKE CRUCIAL RES 49.10, IF MARKET

SUSTAINNA ABOVE THESE LEVELS, IT MAY

TEST 49.60 AND 50 LEVELS.

UPDATE

2008-10-20T21:23:00.000-07:00

UPDATE FOR OCTOBER 21

USD / INR CMP 49 ; INR TRADING WEAK, IF SUSTAINS

49 10 , IT MAY TEST 49.60 AND 50 LEVELS . OTHERWISE

48.50 TO 49.50.

UPDATES ON OCT 17 2008

2008-10-16T21:50:00.000-07:00

OCT 17 FRIDAY

USD / INR CMP Rs 48.62.

INR opened weak at 48.15 and is expected to trade

in the range of 48 to 48.80.

India inflation is at 11.4 .

All Asian markets opened mixed.

UPDATES ON OCT 16 2008

2008-10-15T20:57:00.000-07:00

OCT 16 THURSDAY

USD / INR CMP Rs 48.97.

INR opened weak at 49.04 and is expected to trade

in the range of 48.60 and 49.50.

INR may further weaken upto 50.00 , if INR sustains

above 49.50.

UPDATES ON OCT 15 2008

2008-10-14T21:58:00.000-07:00

OCT 15 WEDNESDAY

USD /INR CMP 48.53

INR opened weak at 47.63 an is expected to trade

in the range of 48.80 to 48.30.

2008-10-13T22:10:00.000-07:00

Oct 14 Tuesday

Yen Falls Against Euro as Bank Rescue Supports Carry Trades .

The yen fell for a second day against the euro as increased

support for banks by European and the U.S. governments

encouraged investors to add to holdings of high-yielding

assets funded in the Japanese currency.

The yen also slid against the Australian and New Zealand

dollars, two favorites of so-called carry trades, as people

briefed on the U.S. plan said the Treasury will buy stakes

in banks including Citigroup Inc. and JPMorgan Chase &

Co. The euro and the pound rose against the dollar after

European countries committed $1.8 trillion to guarantee

bank loans.

Losses in the dollar accelerated against the euro after the

Fed said yesterday the European Central Bank, the Bank

of England and the Swiss National Bank will offer financial

institutions unlimited funds in the U.S. currency.

Currency strategists and investors say Europe's actions may

not prevent the region's economy from slowing. Morgan Stanley

predicts a decline in the euro to $1.25 by 2009, from $1.3581

yesterday and $1.60 in July, and strategists at BNP Paribas

see weakness after ``some support in the near term.''

UPDATES ON OCT 14 2008

2008-10-13T20:52:00.000-07:00

OCT 14 TUESDAY

USD / INR 47.7

INR opened strong at 48,70 and may continue

to trade in the range of 47 to 48.20.

UPDATES ON OCT 13 2008

2008-10-12T22:42:00.000-07:00

OCT 13 MONDAY

Euro Rises Most in 3 Weeks as European Leaders Guarantee Banks .

The euro rose the most in three weeks against the dollar

after European leaders agreed to guarantee bank borrowing

and prevent failures that would disrupt credit markets.

The currency advanced versus the greenback, snapping two

days of losses, as leaders of the 15 countries using the euro

meeting in Paris endorsed bailing out ``systemically'' critical

banks in distress. The yen climbed against the dollar as Asian

stocks pared gains, adding to concern that Japanese investors

will sell higher-yielding overseas assets.

The euro fell 15 percent from a record $1.60 in July through last

week as leaders of the nations sharing the currency struggled

to agree on rescuing financial institutions from the credit

seizures that forced Paris- and Brussels-based Dexia SA

and Milan-based UniCredit SpA to raise capital because

of losses.

Futures traders decreased their bets that the euro will decline

against the U.S. dollar.

Technical analysis shows the dollar may decline to 98 yen in

the next few weeks.

UPDATES ON OCT 13 2008

2008-10-12T21:38:00.000-07:00

OCT 13 MONDAY

USD / INR opened strong and it is expected to trade

in the range of 47.80 and 48.40.

UPDATES ON OCT 8 2008

2008-10-07T21:16:00.000-07:00

OCT 8 WEDNESDAY

USD/INR cmp Rd 47.77.

INR opened weak (48.00) but strengthened in the

early hour of trade.

INR expected to trade in the range of (47.60 -48.20)

UPDATE

2008-10-07T01:46:00.000-07:00

UPDATE AT 2 PM PN OCTOBER 7

INR falls to its lowest since DEC 2002 weighed by a

stronger USD overseas and losses in the local stock

market raising concerns on foreign fund outflows.

UPDATE

2008-10-06T21:07:00.000-07:00

UPDATE FOR OCTOBER 7

USD/INR : CMP 47.77. INR opened weak 48.00,

but strengthened in early hour of trade. INR expected to trade

in the range 47.60 to 48.20.

UPDATES ON OCT 4 2008

2008-10-04T01:42:00.000-07:00

OCT 4 SATURDAY

Dollar Posts Biggest Weekly Gain on Currency Funding Demand .

The dollar posted its biggest weekly advance ever against

the euro on a surge in demand for U.S. currency funding

amid a worldwide credit crunch.

The U.S. currency erased its gain versus the yen on

speculation the $700 billion financial bailout approved by

Congress today won't be an economic cure-all. The yen

dropped against major currencies including the euro and

the New Zealand dollar as approval of the rescue

encouraged investors to borrow in Japan to buy

higher-yielding assets.

The greenback rose 5.6 percent this week versus the euro,

the biggest increase since the 15-nation currency debuted

in 1999. It rose 0.2 percent to $1.3796 at 4:17 p.m. in New

York, from $1.3819 yesterday. The dollar fell 0.1 percent

to 105.19 yen, from 105.33, declining 0.8 percent this week.

The euro dropped 0.3 percent to 145.16 yen, from 145.55.

It fell 6.3 percent this week, the biggest drop ever.

Congress passed a financial-market bailout designed to

unlock credit markets, reversing a rejection by the U.S.

House of Representatives that caused global stocks to

plunge. The bill authorizes the government to buy

troubled assets from financial institutions reeling

from record home foreclosures.

U.S. payrolls shrank by 159,000 last month, following a

revised decline of 73,000 in August, the Labor Department

said today in Washington. It's the biggest loss in jobs since

2003. The unemployment rate stayed at 6.1 percent.

Futures on the Chicago Board of Trade showed an 82

percent chance that the Federal Reserve will cut the 2

percent target lending rate for overnight lending

between banks by a half- percentage point at its

Oct. 29 meeting, with the balance of bets on a reduction

of 0.75 percentage point. Futures showed no chance of

reduced borrowing costs a month ago.

2008-10-02T22:57:00.000-07:00

Market Alert on Oct 3 Friday 11.30 AM Indian Standard Time

INR current market price 46.90 may test 47.50

and support 46.40.

UPDATES ON OCT 3 2008

2008-10-02T22:36:00.000-07:00

OCT 3 FRIDAY

Dollar Heads for Weekly Loss Versus Yen

Before Payrolls Report .

The dollar headed for a third weekly loss against the yen

before a government report that will probably show a

deepening credit crunch contributed to the biggest drop in

employment in more than five years.

The dollar pared this week's gain versus the euro on

speculation the U.S. economy will weaken regardless of

whether lawmakers pass a bill to buy troubled assets from

banks in a vote today. The euro was set for a record weekly

drop against the greenback after European Central Bank

President Jean-Claude Trichet said yesterday policy

makers discussed cutting the benchmark interest rate

before holding it at 4.25 percent.

For the week, the dollar declined 0.8 percent against the yen.

The euro declined 5.2 percent versus the dollar, the biggest

weekly drops since the 15-nation currency's debut in

January 1999. It fell 5.9 percent against the yen, the

biggest weekly decline since March 2000.

Futures on the Chicago Board of Trade yesterday showed

a 94 percent chance the Fed would cut its 2 percent target

rate for overnight lending between banks by a half-

percentage point on Oct. 29, with the balance of bets

on a quarter-point reduction. Futures showed no

chance of lower rates a month ago.

The U.S. House of Representatives will vote on the latest

version of a $700 billion bank rescue plan at about 12:30

p.m. in Washington. The Senate voted 74-25 on Oct. 1

in favor of legislation that links the rescue of the financial

industry to an increase in bank-deposit insurance limits

and tax breaks after the House rejected an earlier

version of the bill.

The dollar rose against all of the 16 most-active currencies

except the yen yesterday as demand for U.S. currency

funding increased, reflecting the reluctance of banks

to lend.

UPDATES ON OCT3 2008

2008-10-02T22:16:00.000-07:00

Market Alert on Oct 3 Friday 10.50 AM Indian Standard Time.

INR falls to a 5 year low in early trade on strong

dollar and weak stock.

UPDATE

2008-09-30T21:23:00.000-07:00

UPDATE FOR 1 COTOBER, 2008

USD/ INR CMP : 47.15

INR trading at above crucial resistance, market to weaken

upto 49 to 49.50 levels.

2008-09-30T00:27:00.000-07:00

SEPT 30 TUESDAY

Yen Rises Against Euro as U.S. Lawmakers Vote Down Rescue Plan .

The yen rose to its highest in almost two weeks against the

euro on concern U.S. lawmakers' rejection of a $700

billion bank rescue plan will cause credit losses to mount,

curbing demand for higher-yielding assets.

The yen rose to 150.23 per euro at 7:28 a.m. in London from

150.38 yen late yesterday in New York. It earlier reached

148.84, the strongest since Sept. 17. The yen reached

103.54 per dollar, the highest since Sept. 16, before

slipping to 104.35 yen from 104.18 yen. The U.S. currency

may stay between 100 yen and 105 yen this year,

Umemoto said. The euro fell to $1.4395 from $1.4434.

The euro approached a one-week low against the dollar on

speculation other European banks may need a rescue after

Dexia SA and Fortis, the largest Belgian financial-services

company, both received government-sponsored lifelines

this week.

The pound fell after the U.K. Treasury seized Bradford &

Bingley Plc yesterday, the nation's biggest lender to landlords.

The Chicago Board Options Exchange Volatility Index rose

34 percent yesterday to 46.72, eclipsing the previous

closing record of 45.74 in October 1998, when the collapse

of hedge fund Long-Term Capital Management

destabilized markets.

Futures on the Chicago Board of Trade indicated yesterday a

66 percent chance that the Fed would reduce its 2 percent

target lending rate by a half-percentage point by its Oct.

29 meeting, compared with zero odds a week ago. There

was a 34 percent chance policy makers would cut by a

quarter-point.

Declines in the dollar may be limited by speculation investors

will buy the currency as they can't secure dollar funding in

short-term money markets.

The Federal Reserve said yesterday it increased existing

currency swaps with foreign central banks by $330 billion

to $620 billion to make more dollars available worldwide

as losses on mortgage-related securities prompt financial

institutions to hoard cash.

UPDATE

2008-09-29T21:07:00.000-07:00

UPDATE FOR 30 SEPTEMBER

USD / CMP ; 46.99

INR Trading at crucial Res : 47.00.

Market to weaken upto 49.50 to 50.00 levels,

if INR sustains above 47 levels.

2008-09-25T23:30:00.000-07:00

SEPT 26 FRIDAY

Dollar Falls, Set for Weekly Decline, as U.S. Debates Rescue .

The dollar fell, heading for a second weekly decline against the

yen, as U.S. lawmakers disagreed over a finance industry

rescue plan and Washington Mutual Inc. became the nation's

biggest bank to collapse.

The greenback was on course for a weekly loss against the euro

after a group of Republicans opposed to the Treasury's $700

billion asset-purchase plan entered negotiations with an

alternative proposal. The yen headed for weekly gains

against the Australian and New Zealand dollars as investors

pared so- called carry trades on concern the talks will drag on.

The dollar fell to 105.66 yen as of 2:18 p.m. in Tokyo from

106.56 late yesterday in New York, taking this week's drop

to 1.7 percent. It declined to $1.4637 per euro from $1.4609

yesterday and $1.4466 Sept. 19. The euro bought 154.61 yen,

down 0.7 percent from late yesterday and 0.6 percent for

the week.

The U.S. government closed Seattle-based Washington Mutual,

which faced $19 billion of mortgage-related losses, after customer

withdrew $16.7 billion since Sept. 15, the Office of Thrift

Supervision said in a statement. JPMorgan Chase & Co.,

the third-biggest U.S. bank by assets, agreed to acquire

WaMu's deposits and branches for $1.9 billion.

The collapse of Lehman Brothers Holdings Inc. and the U.S.

government takeover of insurer American International

Group Inc. have helped cause credit markets to seize up.

The three-month London interbank offered rate, or Libor,

for dollars rose to 3.77 percent yesterday, the highest level

relative to the Fed's target rate on record.

Futures contracts on the Chicago Board of Trade showed an 86

percent chance the Fed will cut its 2 percent target rate for

overnight lending between banks by a quarter-percentage

point at its meeting on Oct. 29, compared with zero chance

a month ago.

The dollar has fallen 5.2 percent against the euro since touching

a one-year high of $1.3882 on Sept. 11. The dollar reached

$1.6038 on July 15, the weakest level since the European

currency made its debut in 1999.

UPDATES ON SEPT 26 2008

2008-09-25T21:23:00.000-07:00

MARKET UPDATE

US Dollar /NR exp to trade in the range 46.52 to 46.02.

INR opened at the same levels on inflation data which

actual 12.14 % expected 12.23 % prior 12.14 %.

2008-09-24T23:00:00.000-07:00

SEPT 25 THURSDAY

Dollar Falls as Traders Bet on Fed Cut, Bush Warns of Recession .

The dollar fell against the euro, ending a two-day gain, as

President George W. Bush warned the U.S. may face a ``

painful'' recession and traders bet on a Federal Reserve

interest-rate cut next month.

The dollar weakened versus the British pound and Swiss

franc before a U.S. government report today that economists

forecast will show home sales declined, extending the worst

housing slump in 17 years. Futures contracts indicate

80 percent odds the Fed will lower borrowing costs in

October as Congress delays a $700 billion bailout

proposal.

The dollar fell to $1.4724 per euro as of 6:35 a.m. in London

from $1.4621 late in New York yesterday.

The odds of the Fed lowering its 2 percent benchmark rate by

a quarter-percentage point at its Oct. 29 policy meeting were

80 percent yesterday, compared with 58 percent on Sept. 23,

futures contracts on the Chicago Board of Trade showed.

The U.S. Dollar Index traded on ICE futures in New York, which

tracks the greenback against the currencies of six major trading

partners, slipped to 76.537 from 76.788 yesterday. It touched

75.890 on Sept. 22, the lowest since Aug. 13.

The dollar dropped versus 13 of the 16 most-active currencies

today. It has fallen 6 percent against the euro since touching a

one-year high of $1.3882 on Sept. 11. The dollar reached

$1.6038 on July 15, the weakest level since the European

currency made its debut in 1999.

UPDATE

2008-09-24T21:08:00.000-07:00

CURRENCY UPDATEAT 9.30 AM ON SEPTEMBER 25

USD / INR: CMP Rs.46.17

INR opened weak created a high of 46.35, expected to

remain weak and trade in the range of46.02 to 46.50.

UPDATES ON SEPT 24 2008

2008-09-23T23:08:00.000-07:00

SEPT 24 WEDNESDAY

Yen Falls as U.S. Stock Futures Rise on Goldman Fundraising .

The yen declined after the Federal Reserve announced it

extended currency swap agreements and as Goldman Sachs

Group Inc. said it will raise funds, giving investors confidence

to buy higher-yielding assets.

The yen dropped the most this week against the dollar and euro

as U.S. stock futures rose and Asian shares pared losses. Goldman

Sachs secured a $5 billion stock investment from Warren Buffett's

Berkshire Hathaway Inc. The Fed arranged $30 billion in swaps

with central banks in Australia, Denmark, Norway and Sweden

to ease short-term dollar funding. The Australian and

New Zealand currencies weakened as prices for

commodities declined.

In so-called carry trades, investors get funds in a country with low

borrowing costs and invest in another with higher interest rates,

earning the spread between the two. The risk is that currency

market moves can erase those profits.

The Bank of Japan's benchmark rate of 0.5 percent compares

with 4.25 percent in Europe and 2 percent in the U.S.

UPDATES ON SEPT 23 2008

2008-09-22T23:31:00.000-07:00

SEPT 23 TUESDAY

Dollar Volatility Rises as Banks May Remain Reluctant to Lend .

Volatility implied by dollar-yen options rose on speculation a

U.S. government plan to buy troubled assets and central

banks' efforts to increase liquidity will fail to stem a

global credit crisis.

The dollar declined to 106.59 yen at 2:58 p.m. in Tokyo from

107.45 yen late in New York on Sept. 19.

Implied volatility for dollar-yen options expiring in one month

rose to 16.41 percent from 16 percent at the end of last week.

The dollar's one-month 25-delta risk-reversal rate against the

yen widened to minus 3.68 percent from minus 3.64 percent on

Sept. 19, indicating a greater premium for dollar puts that allow

sales over dollar calls that grant the right to buy.

U.S. officials devised the bad asset plan after losses on mortgage

-related investments led this month to the bankruptcy of

Lehman Brothers Holdings Inc. and government bailouts f

or American International Group Inc. and mortgage

financiers Freddie Mac and Fannie Mae.

The Federal Reserve led central banks in Europe and Asia in

pouring cash into global financial markets over the past

week due to a crisis of confidence.

UPDATES ON SEPT 22 2008

2008-09-21T23:20:00.000-07:00

SEPT 22 MONDY

Dollar Falls on Concern U.S. Bank Bailout Will Strain Finances .

The dollar dropped against the yen for the first time in three

days on concern a U.S. government plan to buy $700 billion

of troubled assets from banks will widen the country's

budget deficit.

The U.S. currency reached a three-week low against the euro

before reports this week that will probably show tighter lending

rules damped U.S. home sales and durable goods orders last month.

The greenback was near a one-month low against the

Swiss franc as two-year Treasury yields fell for the first

time in three days on bets the Federal Reserve will cut

interest rates.

The dollar fell to 106.59 yen as of 1:55 p.m. in Tokyo, from 107.45

in New York late on Sept. 19. The U.S. currency declined to

$1.4563 per euro, the lowest since Sept. 2, and traded at

$1.4489 from $1.4466. The dollar declined to 1.1016 Swiss

francs from 1.1054.

The dollar also fell as two-year Treasury yields dropped 8 basis

points to 2.11 percent on speculation the Fed will cut rates as

soon as next month. Paulson and Bernanke are due to testify

before the Senate tomorrow about the banking crisis.

The chances of the Fed cutting its benchmark 2 percent rate by

a quarter-percentage point at an Oct. 29 policy meeting stood

at 32 percent, up from zero a month ago, futures contracts on

the Chicago Board of Trade show.

In carry trades, investors get funds in a country with low borrowing

costs and invest in another with higher interest rates, earning the

spread between the two. The risk is that currency market

moves can erase those profits.

In carry trades, investors get funds in a country with low borrowing

costs and invest in another with higher interest rates, earning

the spread between the two. The risk is that currency market

moves can erase those profits.

UPDATES ON SEPT 18 2008

2008-09-17T23:31:00.000-07:00

SEPT 18 THURSDAY

Dollar Drops for Second Day on Speculation More Banks to Fail .

The dollar declined for a second day against the euro on speculation

a seizure in credit markets will cause more financial institutions to fail.

The currency also fell against the Swiss franc after a record slump

in shares of Goldman Sachs Group Inc. and Morgan Stanley, the

only remaining independent brokerages on Wall Street. The cost

of borrowing in dollars for three months jumped the most since

1999 as a U.S. government takeover of American International

Group Inc. failed to ease concern debt losses will spread.

The U.S. currency fell to $1.4370 per euro as of 6:30 a.m. in

London from $1.4326 late yesterday in New York. The dollar

was little changed at 104.60 yen. It touched 103.54 on Sept. 16,

the weakest since May 27, and Amikura says the currency may

fall to 103.80 yen in the coming days. It declined to 1.0997

Swiss francs from 1.1029. The yen was at 150.34 per

euro from 149.88.

The dollar also fell on concern the credit slump will cool the world's

largest economy. U.S. housing starts fell 6.2 percent in August to

an annual rate of 895,000, the lowest since January 1991, the

Commerce Department said yesterday. Building permits, a

sign of future construction, dropped 8.9 percent to an

854,000 pace.

The Federal Reserve kept its target rate for overnight lending

between banks at 2 percent on Sept. 16, rebuffing calls by some

investors for an interest-rate cut.

The yen jumped 3 percent against the dollar on Sept. 15, the most in

a decade, as Lehman Brothers Holdings Inc. filed for the biggest

bankruptcy in history, sparking a global stock market rout and

a surge in bank loan costs.

UPDATE

2008-09-16T07:50:00.000-07:00

UPDATE ON SEPTEMBER 16

The dollar was mixed Tuesday, holding its ground

in the face of mounting financial turmoil as traders

awaited a rate decision by the Federal Reserve's rate-setting

Federal Open Market Committee.

The U.S. currency kept its upward bias after data showing

consumer prices fell 0.1% in August, in line with expectations.

The U.S. unit dipped slightly against the euro, which rose to $1.4238,

compared with $1.4190 previously.

Futures traders raised bets the Fed will lower its target interest

rate from 2% when it ends its meeting around 2:15 p.m. Eastern.

Earlier, the greenback tumbled to a four-month low, however, against

a broadly stronger Japanese yen, which continues to gain support as

traders around the world shun risk amid deepening worries over

the financial sector.

The dollar fell to 103.52 yen, before rebounding slightly to trade at

103.78 yen, still down from 104.27 yen Monday in late North American

trade. The euro fell 0.7% against the Japanese currency to 147.90 yen..

Risk aversion remains the primary theme of the foreign-exchange markets.

The yen has benefited in recent weeks as traders abandon once-popular

carry trades that centered on borrowing in low-yielding yen and then

using the proceeds to buy assets denominated in higher-yielding assets,

particularly Australian and New Zealand dollars.

UPDATES ON SEPT 16 2008

2008-09-15T22:51:00.000-07:00

SEPT 16 TUESDAY

Asian Stocks, U.S. Dollar Drop, Treasuries Gain, on Lehman, AIG .

Asian stocks plunged the most in eight months, the dollar fell

and Treasuries rose as debt rating downgrades threatened

American International Group Inc.'s efforts to survive a

credit-market slump.

Oil fell to a seven-month low and the cost to protect corporate

bonds from default surged on concern the credit turmoil will

tip the global economy into a recession. The won slumped 4.6

percent to 1,160 per dollar, leading declines in emerging-

market currencies.

Markets in Japan, China, Hong Kong and South Korea were

shut for public holidays yesterday, giving investors their

first opportunity to react to the bankruptcy filing by Lehman,

the fourth-largest U.S. investment bank. At least seven

Japanese banks lent the company a total of $1.62 billion,

according to the Chapter 11 filing by Lehman.

Yields on U.S. two-year notes dropped 5 basis points, or 0.05

percentage point, to 1.69 percent, according to bond broker

BGCantor Market Data. Futures contracts on the Chicago

Board of Trade indicate the odds of a quarter-point Fed

rate cut today surged to 68 percent from zero percent a

week ago. Japanese five-year government bond yields

fell 11.5 basis points to 1 percent.

UPDATES ON SEPT 12 2008

2008-09-11T21:20:00.000-07:00

SEPT 12 FRIDAY

Euro Trades Near One-Year Low on Speculation Production Shrank .

The euro traded near a one-year low against the dollar on

speculation that a government report will show today industrial

production in Europe shrank, backing the case for the region's

central bank to cut interest rates.

The currency is headed for a third weekly loss as traders

increased bets that the European Central Bank will lower

borrowing costs to support economic growth. The yen was

near a two-year high against the euro on concern that

Lehman Brothers Holdings Inc. may collapse, prompting

sales of higher-yielding assets funded with cheap loans

in Japan.

The euro traded at $1.4003 at 11:35 a.m. in Tokyo after reaching

$1.3882 yesterday, the weakest level since Sept. 18, 2007. It has

fallen 1.9 percent this week. The yen bought 150.15 per euro from

149.98 yesterday, when it touched 147.54, the strongest in more

than two years. It rose 2.4 percent versus the euro this week.

The U.S. currency traded at 107.19 yen from 107.17 yen, and

was set for a 0.5 percent decline this week.

The dollar has gained 12.7 percent since touching the all- time low

of $1.6038 per euro on July 15 as the European economy slumped

and crude oil dropped more than 30 percent to $101.50 a barrel

from its peak of $147.27.

Gains in the dollar may be limited by speculation a Commerce

Department report may show today that U.S. retail sales fell in

August for the first time in six months, adding to signs the

world's largest economy is slowing.

UPDATES ON SEPT 2 2008

2008-09-01T22:07:00.000-07:00

SEPT 2 TUESDAY

Dollar Rises to Six-Month High Against Euro as Oil Price Drops .

The dollar rose to its highest since February against the euro

on speculation oil prices near a four- month low will support

economic growth in the U.S., the world's largest energy

consumer.

The U.S. currency advanced to its strongest level in more than

two years versus the British pound as Hurricane Gustav

weakened before making landfall in Louisiana. Australia's

dollar slid to its lowest level in almost a year as economists

predict the country's central bank will lower interest rates

today for the first time since 2001.

Crude oil for October delivery fell as much as 4.2 percent to

$110.60 a barrel, the lowest since May 1. The euro-dollar

exchange rate and oil had a correlation of 0.9 in the past

year, according to Bloomberg calculations. A reading of 1

would mean they moved in lockstep.

The yen rose to 91.39 versus the Australian dollar, the

strongest in five months, on speculation an interest rate

cut from Australia's central bank will prompt traders to

pare holdings of higher-yielding assets funded with Japan's

currency. The yen also gained to a three-week high of

74.69 versus the New Zealand dollar and to 192.68 against

the pound, the strongest since March 17.

U.K mortgage approvals dropped to the lowest level in nine

years and manufacturing contracted, data showed yesterday,

adding to evidence of a looming recession.

The Bank of England will keep interest rates unchanged at 5

percent on Sept. 4, according to a Bloomberg News survey of

economists. Traders are paring bets on higher borrowing

costs in the U.K. The implied yield on the March short-

sterling futures contract fell to 5.06 percent yesterday

from 5.5 percent at the start of August.

UPDATES ON AUG 28 2008

2008-08-27T23:52:00.000-07:00

AUG 28 THURSDAY

Euro Rises for Second Day on Speculation ECB Won't Lower Rates .

The euro rose against the dollar for a second day on speculation

the region's interest-rate advantage over the U.S. will draw

investors after a European Central Bank official signaled a

cut in borrowing costs is unlikely.

The euro rose to $1.4778 at 7:18 a.m. in London from $1.4727

yesterday in New York. The currency traded at 161.05 yen

from 161.27. Against the pound, it appreciated 0.3 percent

to 80.49 pence, near a record high of 80.99 pence on

April 16.

Traders reduced bets that the central bank will cut its 4.25

percent main refinancing rate next year. The implied yield

on the Euribor futures contract expiring in September 2009

rose 11 basis points, or 0.11 percentage point, to 4.43 percent

yesterday.

Crude oil rose for a fourth day to reach $119.10 a barrel on

forecasts Tropical Storm Gustav will strengthen as it enters

the Gulf of Mexico, home to 26 percent of U.S. production.

The euro-dollar exchange rate and oil had a correlation of

0.9 in the past year, according to Bloomberg calculations.

Declines in the dollar may be limited before revisions to the

second-quarter gross domestic product report from the

Commerce Department today. The U.S. economy

expanded an annualized 2.7 percent, faster than

preliminary data showing 1.9 percent growth, according

to a Bloomberg survey of 78 economists.

The Dollar Index traded on ICE Futures in New York declined

0.4 percent to 76.779 from 77.051 late in New York yesterday.

It reached an eight-month high of 77.619 on Aug. 26.

UPDATES ON AUG 27 2008

2008-08-27T01:25:00.000-07:00

AUG 27 WEDNESDAY

Dollar Falls on Speculation Reports to Show Flagging Spending .

The dollar fell from a six-month high against the euro

and dropped versus the yen on speculation weakening

U.S. business and consumer spending will delay a Federal

Reserve interest-rate increase.

The greenback retreated from a two-year high against the

British pound as economists forecast U.S. data this week

will show declines in durable goods orders and slowing

consumption. The Australian dollar rebounded from

an 11-month low as rising Asian stocks gave investors

confidence to buy higher-yielding assets overseas.

The dollar declined to $1.4685 per euro at 8:14 a.m. in

London from $1.4653 in New York yesterday, when it

touched $1.4571, the strongest since Feb. 14. The dollar

fell to 109.23 yen from 109.60. The euro was at 160.43

yen from 160.64 yesterday. The dollar slid to $1.8409

versus the pound from $1.84. It rose yesterday to $1.8331,

its highest since July 2006.

Futures on the Chicago Board of Trade show a 22 percent

chance that the Fed will increase its 2 percent target rate

for overnight lending between banks by at least a quarter

-percentage point at a Dec. 16 meeting, compared with

70 percent odds a month ago. Policy makers next meet

Sept. 16 .

Bookings for U.S. goods made to last several years were

unchanged in July, compared with a gain of 0.8 percent

in June, according to a Bloomberg News survey of

economists before a Commerce Department report at

8:30 a.m. today in Washington. A separate report on

Aug. 29 may show personal spending rose 0.2 percent,

less than half the 0.6 percent gain in June, according

to a separate survey.

Gains in the euro may be limited by speculation German

inflation slowed this month, reducing pressure on the

European Central Bank to raise borrowing costs.

The ICE futures exchange's Dollar Index, which compares

the greenback against the currencies of six U.S. trading

partners, was last at 76.880 from 77.251 yesterday.

It rose to 77.413 on Aug. 19, fell to 76.022 on Aug. 21

and then rose yesterday to a second peak at 77.619.

UPDTAES ON AUG 22 008

2008-08-21T22:54:00.000-07:00

AUG 22 FRIDAY

Yen Falls Against Dollar as Japan Investors Seek Higher Yields .

The yen fell from a two-week high against the dollar on

speculation Japanese investors took advantage of the

currency's advance to buy higher-yielding assets abroad.

The yen fell to 108.96 per dollar at 1:04 p.m. in Tokyo from

108.43 in New York yesterday. It slid to 162.01 a euro from

161.57. The dollar has fallen 1.4 percent against the yen

this week, the biggest decline since May 9, and yesterday

reached 108.14, the weakest since Aug. 5. It rose to

$1.4869 per euro from $1.4899, paring this week's

drop to 1.2 percent.

The U.S. currency was set for its first weekly loss versus

the euro since July 11 on speculation a deepening housing

recession and a rebound in oil prices will prolong the

nation's economic slump. Bernanke will speak on

financial stability at the Federal Reserve Bank of

Kansas City's annual symposium in Jackson Hole,

Wyoming at 8 a.m. local time.

Crude oil prices surged 4.9 percent yesterday to $121.18

a barrel in New York, the biggest increase since June 6.

The euro- dollar exchange rate and oil had a correlation

of 0.9 in the past year, according to Bloomberg

calculations based on their value changes.

The dollar has gained more than 7 percent versus the euro

since touching an all-time low of $1.6038 on July 15 and

appreciated 0.6 percent against the yen this month as

reports showed the European and Japanese economies

shrank in the second quarter.

.

UPDATES ON AUG 21 2008

2008-08-20T22:12:00.000-07:00

AUG 21 THURSDAY

Dollar Falls on U.S. Manufacturing Slump, Credit-Market Losses .

The dollar fell against the yen on speculation a manufacturing

industry contraction and credit- market losses will

prompt the Federal Reserve to hold off from raising

interest rates.

The U.S. currency also slid against the euro on concern futures

traders will pare bets on gains in the dollar, which has gained

against all 16 of the most-active currencies this month.

The Australian and New Zealand dollars rose as

commodity prices rallied for a third day, helping boost

the value of the two nations' exports.

The dollar fell to 109.61 yen as of 1:35 p.m. in Tokyo from

109.86 in New York yesterday. It also declined to

$1.4774 per euro from $1.4747 yesterday, when it

climbed 0.2 percent. The euro was at 161.91 yen

from 162.03. It reached 160.87 on Aug. 19, the

lowest level in three months.

The Australian dollar rose to 87.26 U.S. cents from 86.90

cents late in Asia yesterday. New Zealand's dollar

advanced to 71.37 U.S. cents from 70.99 cents.

The U.S. currency has gained 7.7 percent versus the euro

since touching an all-time low of $1.6038 on July 15 and

appreciated 1.6 percent this month against the yen. The

greenback advanced as reports showed the European

and Japanese economies shrank in the second quarter

and crude oil fell more than 20 percent from the record

$147.27 a barrel reached July 11.

Futures traders are betting for the first time since March

2007 that the dollar will rise against the euro, yen and British

pound. There were 24,060 more wagers by hedge funds and

other large speculators on a gain in the dollar than on a

decline on Aug. 12, data from the Washington-based

Commodity Futures Trading Commission showed

Aug. 15. A week earlier there were 20,886 more bets

on dollar weakness.

Crude oil today increased 0.7 percent to $116.36 a barrel.

The euro-dollar exchange rate and oil had a correlation

of 0.9 in the past year, according to Bloomberg

calculations based on their value changes. A reading of 1

would mean they move in lockstep.

The U.S. currency also weakened on speculation credit-

market losses in the U.S. will deepen. Fannie Mae and

Freddie Mac shares tumbled in New York trading to

the lowest levels since at least 1990 as speculation

increased that the U.S. Treasury will have to bail

out the mortgage-finance companies.

Futures on the Chicago Board of Trade show an 18 percent

chance the U.S. central bank will raise the 2 percent target

rate for overnight lending between banks by at least a

quarter- point by its Dec. 16 meeting, down from 34

percent odds a week earlier. Policy makers next

meet Sept. 16.

UPDATES ON AUG 20 2008

2008-08-19T23:18:00.000-07:00

AUG 20 WEDNESDAY

Yen Falls as China Stock Gains Boost Confidence in Carry Trades .

The yen weakened against the dollar as gains in Chinese

stocks encouraged investors to buy higher- yielding

assets funded in Japan.

The currency declined the most against the New Zealand dollar,

a favorite of so-called carry trades, as China's benchmark stock

index jumped the most since April. The British pound traded

near a two-year low on speculation the Bank of England

will say today in minutes of its last policy meeting that it

expects inflation to ease, adding to the case for a cut in

interest rates.

The yen slid to 109.85 per dollar at 1:43 p.m. in Tokyo from

109.72 in New York yesterday. The currency traded at

162.26 per euro, from 162.13. The U.S. currency was at

$1.4772 per euro from $1.4776 yesterday, when it

touched $1.4631, the strongest level since Feb. 20.

The pound was little changed at $1.8672. It slipped to $1.8512 on

Aug. 15, the lowest level since July 2006.

TRADING CALL

2008-08-19T20:58:00.000-07:00

TRADING CALL ON 20 AUGUST, 2008 AT 10AM

BUY GUJARAT ALKALI CMP RS.171 FOR SHORT TERM

DELIVERY TARGET RS.184.

UPDATES ON AUG 13 2008

2008-08-12T22:21:00.000-07:00

AUG 13 WEDNESDAY

Yen Rises to 12-Week High Against Euro as Carry Trades Pared .

The yen rose to a 12-week high against the euro after a report

showing Japan's economy contracted fanned concern about

a global slump, prompting the nation's investors to cut bets

on higher-yielding assets abroad.

Japan's currency climbed to a two-year high against

New Zealand's dollar and the strongest in four months

versus Australia's, as prices of commodities the two nations

export extended declines. The yen also advanced for a third

day against the U.S. dollar as financial companies led Asian

stocks lower, prompting investors to pare so-called

carry trades.

The dollar may extend its decline versus the yen before a

U.S. government report forecast to show consumers are

spending less. Retail sales dropped 0.1 percent last month,

the first decrease since February, according to the median

forecast of 75 economists surveyed by Bloomberg News.

The Commerce Department is scheduled to release

the report today.

Crude oil last traded at $112.98 a barrel after falling yesterday to

a 14-week low of $112.31. Gold fell for an eighth straight session

and copper dropped to a six-month low in New York trading

yesterday. Gold and crude oil are Australia's third and

fourth most-valuable commodity exports.

U.S. gross domestic product rose at an annual rate of 1.9 percent

in the second quarter, the Commerce Department said

July 31. It fell 0.2 percent in the final three months

of last year.

UPDATES ON AUG 11 2008

2008-08-10T22:43:00.000-07:00

AUG 11 MONDAY

Dollar Gain Signals Pain as Rally Prompts Exit From Bull Trade .

The dollar posted its biggest gain against the Euro in almost eight years .

But still the U.S currency would be palgued by the nation's slowing

economy, widening budget and trade deficits and negative

inflation-adjusted interest rates.

The dollar strengthened to $1.5005 to the euro last week from

$1.5564 on Aug. 1, the biggest weekly increase on a percentage

basis since January 2005. It surged 2.08 percent on Aug. 8,

touching $1.4998, the most since Sept. 6, 2000, and the

second largest rally since the euro was introduced in 1999.

The number of U.S. home foreclosure filings more than doubled

in the second quarter from a year earlier, according to RealtyTrac

Inc., a seller of default data. Government reports this week may

show retail sales fell 0.1 percent in July, the first decrease since

February, and the U.S. trade deficit widened in June to $62

billion from $59.8 billion.

Dollar bears point to the Fed's decision on Aug. 5 to leave its

target rate for overnight loans between banks at 2 percent for

a second straight policy meeting. Policy makers said

``downside risks'' to growth remain, while inflation is a

``significant concern.''

Futures on the Chicago Board of Trade show a 40 percent chance

the Fed will raise its target rate at least a quarter- percentage

point by year-end and a 90 percent probability of higher

borrowing costs by the end of March.

The 14-day relative strength index fell to 22.31, the lowest since

the euro's debut. A relative strength index level below 30 suggests

a currency's decline is extreme and a reversal may be imminent.

UPDATES ON AUG 8 2008

2008-08-07T22:48:00.000-07:00

AUG 8 FRIDAY

Euro Slumps to Five-Month Low on Reduced Bets for Higher Rates .

The euro slumped to a five-month low against the dollar as traders

pared bets that the European Central Bank will raise interest

rates due to a slowing economy.

The euro also fell to a three-week low versus Japan's currency

after ECB President Jean-Claude Trichet said economic growth

will be ``particularly weak'' through the third quarter.

The dollar headed for its biggest weekly gain against the yen in

almost two months as oil dropped 18 percent from a record.

The euro fell to $1.5195, the lowest since March 5, before trading

at $1.5216 at 12:37 p.m. in Tokyo, from $1.5325 late yesterday

in New York. It's set for a fourth weekly decline, the worst losing

streak since May 2007. The euro weakened to 166.92 yen from

167.70 yesterday and 167.55 at the end of last week. It reached

166.55 yen, the lowest since July 17.

The dollar traded at 109.70 yen, from 109.44 late yesterday

and up 1.8 percent from the end of last week. The U.S. currency

reached a seven-month high of 109.88 yen on Aug. 6.

The dollar traded near a seven-month high against the yen as oil

prices declined during the past week to trade at $119.80 a barrel,

on course for a 4.2 percent loss this week and compared with

the record $147.27 set on July 11.

UPDATES ON AUG 6 2008

2008-08-05T22:51:00.000-07:00

AUG 6 WEDNESDAY

Euro Rises on Speculation ECB's Trichet to Flag Inflation Risk .

The euro rose, rebounding from a seven-week low against the

dollar, on speculation European Central Bank President

Jean-Claude Trichet will signal higher interest rates may

be needed to combat inflation.

The dollar held near seven-week highs against the yen as oil

tumbled to the lowest level in three months, supporting

economic growth prospects in the world's largest

consumer of the fuel.

Oil has lost more than $28 since touching a record of $147.27

a barrel in New York on July 11 as unprecedented fuel costs

prompted U.S. consumers to limit spending.

The Federal Reserve left borrowing costs unchanged

yesterday at 2 percent, saying ``downside risks'' to

growth remain, while inflation is a ``significant concern.''

Traders yesterday pared bets the Fed will raise interest

rates on Sept. 16. Futures on the Chicago Board of Trade

showed a 27 percent chance the Fed would increase its

target lending rate at least a quarter-percentage point,

down from 32 percent on Aug. 4.

The U.S. currency's 25-day moving average versus the yen

has risen since late last month, a bullish signal for the next

few weeks, Tokyo-based Kinouchi said. The dollar may keep

climbing until it reaches 108.76, its 260-day moving average

and a level where sell orders are likely to be placed, he said.

UPDATES ON AUG 5 2008

2008-08-04T23:08:00.000-07:00

AUG 5 TUESDAY

Dollar Rises Against Euro on Fed Rate Outlook, Oil Decline .

The dollar rose, approaching a six- week high against the euro,

before a Federal Reserve decision today at which policy

makers may leave interest rates on hold and highlight

concerns about inflation.

The U.S. currency also traded near a seven-week peak versus

the yen after crude oil fell to a 13-week low, helping the world's

largest consumer of the fuel sustain economic growth.

Australia's dollar dropped to a three-month low after

the nation's central bank signaled borrowing costs

may be cut.

The dollar rose to $1.5528 per euro at 1:55 p.m. in Tokyo from

$1.5576 yesterday in New York. It touched $1.5515 on Aug. 1,

the strongest level since June 24. It was at 108.19 yen from

108.27 yen in New York yesterday. It touched a four-month

high of 108.58 yen on June 16.

The dollar advanced against the euro after the U.S. Commerce

Department yesterday reported consumer inflation accelerated

to 0.8 percent in June, the fastest pace since September 2005.

Also supporting the greenback, crude oil fell below $120 a barrel

for the first time since May. The euro-dollar exchange rate and

oil have had a correlation of 0.9 in the past year, according to

Bloomberg calculations. A reading of 1 would mean they

moved in lockstep.

The Fed will keep its target rate for overnight loans between

banks at 2 percent today, according to the median forecast

of economists in a separate Bloomberg News survey. The

decision will be announced at 2:15 p.m. in Washington.

Futures on the Chicago Board of Trade showed a 32 percent

chance yesterday the Fed will raise its 2 percent target rate

for overnight lending between banks by at least a quarter

point at the Federal Open Market Committee meeting on

Sept. 16, compared with 38 percent a week earlier.

The contracts showed a 65 percent chance the Fed

will increase the rate by December, almost the same

odds as a week earlier.

UPDTAES ON JULY 30 2008

2008-07-29T23:35:00.000-07:00

JULY 30 WEDNESDAY

Yen Trades Near 1-Month Low as Japan Investors Seek High Yield .

The yen traded near a one-month low against the dollar

on speculation Japanese investors will invest their summer

bonuses in overseas assets offering higher yields.

Japan's currency traded at 108.05 per dollar at 6:45 a.m. in

London from 108.11 in New York yesterday, when it fell

to 108.29, the weakest level since June 25. The yen was also

at 168.45 per euro from 168.53. The dollar traded at

$1.5587 per euro from $1.5588 yesterday, when it climbed

to $1.5554, the strongest level since June 25.

The Bank of Japan's target lending rate of 0.5 percent is the

lowest among industrialized economies, making assets

outside of the country more attractive to domestic

investors.

The dollar may rise for a second day against the euro after

crude oil dropped to a 12-week low of $120.42 a barrel

yesterday, helping drive U.S. stocks higher. The euro-dollar

exchange rate and oil had a correlation of 0.9 in the past

year, according to Bloomberg calculations based on the

correlation of their value changes. A reading of 1 would

mean they moved in lockstep.

U.S. companies cut 60,000 jobs in July, following a reduction of

79,000 in June, according to a Bloomberg News survey of

economists before a report from ADP Employer Services

at 8:15 a.m. New York time. Non-farm payrolls, due on

Aug. 1 from the Labor Department, dropped by 75,000

following a decline of 62,000 in June, according to a

separate survey.

UPDATES ON JULY 29 2008

2008-07-28T23:21:00.000-07:00

JULY 29 TUESDAY

Dollar Trades Near 1-Week Low Against Euro Before Housing Data .

The dollar traded near a one-week low against the euro on

speculation an industry report today will show the U.S. housing

slump deepened, increasing the risk credit-market losses

will widen.

The dollar traded at $1.5746 per euro at 6:32 a.m. in London,

from $1.5741 late yesterday in New York and near a July 23

low of $1.5798. The U.S. currency weakened to 107.37 yen

from 107.46 yesterday, and to C$1.0213 against the

Canadian dollar from C$1.0226. The euro slid to

169.09 yen from 169.17.

U.S. stocks and the dollar fell yesterday even after U.S.

Treasury Secretary Henry Paulson called for banks to use

covered bonds more extensively to finance mortgages. Such

bonds require lenders to make good on payments in the

event that homeowners default. The U.S. mortgage market

currently depends on Fannie Mae and Freddie Mac and other

government-linked institutions for more than 70 percent of funds.

Nonfarm payrolls dropped by 75,000 in July, following a

decline of 62,000 in June, according to a Bloomberg survey.

The Labor Department will release the employment data Aug. 1.

Futures on the Chicago Board of Trade showed yesterday a

38 percent chance the Fed will increase its 2 percent target

rate for overnight lending between banks by at least a

quarter- percentage point by Sept. 16, compared with

41 percent odds a week earlier. Policy makers

next meet Aug. 5.

Gains in the yen may be limited after government reports

showed Japan's unemployment rate rose to the highest

in almost two years in June and household spending fell,

adding to signs the economy's longest postwar

expansion may be coming to an end.

UPDTAES ON JULY 18 2008

2008-07-17T22:42:00.000-07:00

JULY 18 FRIDAY

Dollar Heads for Weekly Gain as Banks Weather Credit

Turmoil .

The dollar headed for a weekly advance against the euro,

rebounding from a record low on signs U.S. investment

banks will withstand credit-market losses arising from

the nation's subprime mortgage collapse.

The U.S. currency also rose versus the pound on speculation the

U.K. government will boost borrowing as Chancellor of the

Exchequer Alistair Darling introduces new spending guidelines.

The yen was set for a weekly loss against the South African

rand as a rally in U.S. stocks following

JPMorgan Chase & Co.'s better-than-expected earnings

encouraged so-called carry trades.

The dollar rose to $1.5855 per euro at 2:28 p.m. in Tokyo

from $1.5863 late yesterday and $1.5938 at the end of

last week. It hit an all-time low of $1.6038 on July 15.

The currency was at 106.26 yen from 106.28 yen, little

changed from a week ago.

Global banks and securities firms have reported losses and

writedowns of $436 billion related to subprime loans to U.S

homeowners with poor credit, weighing on both stocks and

the nation's currency this year.

Still, cheaper oil is helping support the greenback against

the euro. Crude oil for August delivery is set for a record

weekly drop in dollar terms, having lost more than $14 a

barrel since July 11 in New York.

The euro-dollar exchange rate and oil have moved in the

same direction 90 percent of the time during the past year,

according to Bloomberg calculations based on the correlation

of their value changes.

UPDATES ON JULY 16 2008

2008-07-15T22:25:00.000-07:00

JULY 16 WEDNESDAY

Dollar Trades Near Record Low as U.S. Banks May Report Losses .

The dollar traded near a record low against the euro on

speculation U.S. banks will report further losses this week,

eroding confidence in the financial system of the world's

largest economy.

The U.S. currency was also near a six-week low versus the yen .

The dollar traded at $1.5897 per euro at 1:42 p.m. in Tokyo,

after touching $1.6038 yesterday, the weakest since the

15- nation currency's 1999 debut. The dollar bought 104.64

yen, after reaching 104.16 yesterday, the lowest since June 3.

Japan's currency traded at 166.35 per euro from 166.65.

The dollar may fall to $1.5920 versus the euro and

104.40 yen today.

Federal funds futures on the Chicago Board of Trade show a

7 percent chance that the Fed will increase the 2 percent

target lending rate at its Aug. 5 meeting, compared with

77 percent odds a month ago.

The Dollar Index, which tracks the greenback against the

currencies of six U.S. trading partners, fell for a sixth day,

dropping 0.2 percent to 71.71.

The U.S. currency has given up most of the gains made

versus the euro since July 3.

It has since slumped 1.2 percent on concern that losses at

Fannie Mae and Freddie Mac will deepen.

Investors increased net long positions on the U.S. currency

to a four-month high of 105,990 contracts, and on the

euro to a five-month high of 20,869 contracts. A long

position is a bet that an asset price will rise.

The U.S. currency is poised to slide as the relative

strength index, a comparison of the magnitude of gains

and losses, shows the dollar is losing momentum.

The dollar's 14-day relative strength index against the yen,

was 37.3 today, down from 46.4 on July 14 and

51.6 a week ago.

UPDATES ON JULY 15 2008

2008-07-14T22:49:00.000-07:00

JULY 15 TUESDAY

Dollar Falls on Concern Credit-Market Losses Will Damp Growth .

The dollar fell against the yen and euro on speculation Federal Reserve

Chairman Ben S. Bernanke and U.S. Treasury Secretary

Henry Paulson will tell lawmakers credit-market losses will

weigh on U.S. economic growth.

The currency declined to a 25-year low versus the Australian

dollar on concern confidence in the debt of Fannie Mae and

Freddie Mac will deteriorate even after the U.S. government

pledged support for the two-largest buyers of home loans.

The yen remained higher after the Bank of Japan kept

interest rates unchanged at 0.5 percent today, the lowest

among major economies.

The Bank of Japan kept the benchmark overnight lending rate unchanged .

U.S. stocks fell yesterday, led by financial shares, after the

government's seizure of Pasadena, California-based IndyMac

Bancorp Inc. and predictions of wider credit losses overshadowed

Paulson's pledge to shore up Fannie and Freddie.

Global banks and securities firms have reported losses of about

$400 billion as the subprime-mortgage market collapsed.

The Dollar Index traded on ICE futures in New York, which

tracks the greenback against the currencies of six U.S. trading

partners, traded at 71.783 today from 71.915 yesterday.

JULY 11 2008

2008-07-10T22:09:00.000-07:00

JULY 11 FRIDAY

Dollar Heads for Weekly Loss Versus Euro Before

Confidence Data .

The dollar headed for a weekly loss against the euro on

speculation a report today will show U.S. consumer

confidence fell to a 28-year low, signaling the Federal

Reserve will refrain from raising interest rates this year.

The dollar traded at $1.5772 per euro as of 1:36 p.m. in

Tokyo from $1.5788 in New York yesterday, when it fell

to $1.5801, the weakest since July 3. It ended last week

at $1.5706. The U.S. currency was at 107.18 yen from

107.07 yen yesterday and 106.80 yen a week ago. The

euro traded at 169.05 yen from 169.05 yen yesterday

and 167.73 yen on July 4.

The dollar pared losses after the New York Times reported

U.S. officials are considering plans to take over one or

both of Fannie Mae and Freddie Mac. The government is

discussing placing them in a conservatorship, under which

their losses would be covered by taxpayers, the Times said,

citing unidentified officials briefed on the matter.

Crude oil traded near $142 a barrel after rising 4.6 percent

yesterday, the biggest gain since June 6, as Iran test- fired

more missiles in the Persian Gulf.

The euro-dollar exchange rate and oil have moved in the

same direction 90 percent of the time during the past year,

according to Bloomberg calculations based on the correlation

of their value changes.

UPDATES ON JULY 10 2008

2008-07-09T22:09:00.000-07:00

JULY 10 THURSDAY

Dollar Is Little Changed Before Bernanke, Paulson Testimony .

The dollar was little changed against the euro before

Federal Reserve Chairman Ben S. Bernanke and U.S.

Treasury Secretary Henry Paulson address U.S. law

makers on their response to widening credit-market

losses.

The U.S. dollar fell against Australia's currency as traders

increased bets the Fed will keep interest rates on hold

through 2008, boosting the appeal of higher-yielding

assets. The British pound declined on speculation the

Bank of England will keep interest rates unchanged today

to curb inflation, increasing the risk that the economy will

enter a recession.

The dollar traded at $1.5725 per euro at 12:38 p.m. in Tokyo

from $1.5743 yesterday in New York. The U.S. currency bought

106.87 yen from 106.76. The yen was at 168.04 per euro from

168.06.

The pound fell to $1.9815 from $1.9832. Against the euro

, it was little changed at 79.36 pence.

The dollar has fallen 11 percent against the euro since

September, when the Fed made the first of seven reductions

in its target lending rate to avert a recession. Futures

contracts on the Chicago Board of Trade show the odds that

policy makers will keep borrowing costs unchanged this year

rose to 32 percent from 7 percent a month ago.

Traders yesterday increased bets the ECB will raise

borrowing costs again to curtail 4 percent annual inflation

that is twice the central bank's 2 percent target. The implied

rate on the December Euribor interest-rate futures contract

rose 0.02 percentage point to 5.12 percent.

UPDATES ON JULY 9 2008

2008-07-08T22:50:00.000-07:00

Dollar Falls Against Euro, Yen After Iran Test-Fires Missile .

The dollar declined against the yen and euro after Iran's

state television said the nation test- fired a long-range

missile capable of reaching Israel.

The yen and the Swiss franc strengthened on speculation

the missile test signals that international political tensions

will keep escalating, spurring investors to buy assets in

nations that are perceived as safer.

The dollar fell to 107.05 yen as of 2:25 p.m. in Tokyo from

107.50 yen late in New York yesterday. It also weakened to

$1.5716 versus the euro compared with $1.5670 yesterday.

Japan's currency climbed to 168.24 versus the euro from

168.45 in New York yesterday. The Swiss franc advanced to

1.0282 versus the dollar from 1.0337.

UPDATES ON JULY 8 2008

2008-07-07T22:19:00.000-07:00

The dollar may strengthen to 108.58 yen, said Eiji Kinouchi, chief

technical analyst at Daiwa Institute of Research, citing charts

traders use to predict price movements.

The U.S. currency's 13-week moving average against the yen

last week rose above the 26-week moving average, a pattern

called a ``golden cross,'' which is a bullish signal, Tokyo- based

Kinouchi said. The 13-week moving average is currently at

104.89 yen and the 26-week moving average is at 104.64,

according to data compiled by Bloomberg. The target of

108.58 yen will match a four-month high the dollar set

on June 16.

The dollar traded at 107.14 yen as of 11:09 a.m. in Tokyo

from 107.18 yen in New York yesterday, when it rose to

107.75, the highest level since June 26.

UPDATES ON JUNE 25 2008

2008-06-25T01:10:00.000-07:00

JUNE 25 WEDNESDAY

Dollar Trades Little Changed Before U.S. Interest-Rate Decision .

The dollar was little changed against the euro and yen

before the Federal Reserve ends a two-day meeting at

which policy makers are forecast to end a run of seven

interest-rate cuts.

The U.S. currency traded near a two-week low versus

the Australian dollar as traders reduced bets that the

central bank will increase rates from 2 percent this year

on signs the economy is still slowing. The Norwegian

krone approached the highest in two weeks on

speculation policy makers will raise borrowing

costs to 5.75 percent today.

The dollar was at $1.5556 per euro at 7:25 a.m. in London

from $1.5568 in New York yesterday. It touched $1.6019

on April 22, the lowest level since Europe's currency

debuted in 1999. The dollar traded at 107.92 yen from

107.82. Japan's currency was at 167.87 a euro from

167.85 yesterday, when it touched 168.38, the

weakest since July 23.

The U.S. currency slipped to 95.58 cents against

the Australian dollar from 95.54 cents in New York

yesterday, when it fell to 95.87 cents, the lowest

since June 9.

The dollar has gained 1.5 percent against the euro

this quarter as traders bet the economic slowdown

sparked by the collapse of the subprime-mortgage

market will spread to Europe as the U.S. recovers.

This year, the dollar is down 6.2 percent.

The dollar may weaken as the Commerce Department

will report today that new-home sales fell to an annual

pace of 512,000 in May, close to a 17-year low, according

to the median estimate of economists surveyed by Bloomberg.

UPDATES ON JUNE 24 2008

2008-06-24T01:37:00.000-07:00

JUNE 24 TUESDAY

Dollar Gains On Other Majors Ahead of Wednesday's Rate Call

U.S. Consumer Confidence in June Probably Fell to 15-Year Low

Consumer confidence probably fell this month to

the lowest level in more than 15 years, raising the

risk that Americans will retrench after spending

their tax rebates, economists said before reports

today.

The euro declined against the dollar and the yen.

The European single currency traded at $1.5569

against the dollar at 8:14 a.m. in London, after earlier

rising to $1.5636, near the highest level since June 10.

The dollar found some traction against other major

currencies on Monday in New York, paring a fraction

of last week's losses as traders looked ahead to

Wednesday's interest rate call from the Federal Reserve.

The dollar advanced versus the euro, picking

up ground in early dealing before leveling off.

The buck rose to 1.5467 before easing back to

1.55, an improvement from Friday's 10-day

low of 1.5650.

The dollar rose sharply versus the sterling

in early dealing Monday before giving back

some gains in afternoon dealing. The buck

climbed almost 2 cents to 1.9584, then fell

back to 1.9640.

The dollar continued its run of choppy trading

versus the yen, improving to 108 from Friday's

weekly low of 107.10. The dollar has been moving

roughly sideways for the past 2 weeks, unable to

build upon its multi-month high of 108.58 from

earlier this month.

The greenback was little changed against the loonie,

staying near 1.0170 as the price of oil jumped back to

$137 in spite of a promise from the Saudi government

to boost oil production.

UPDATES ON JUNE 19 2008

2008-06-19T00:38:00.000-07:00

JUNE 19 THURSDAY

Dollar May Fall for Fourth Day Before Report on Manufacturing .

The dollar may fall against the euro for a fourth day

before a Federal Reserve report forecast by economists

to show manufacturing in the Philadelphia region shrank

in June for a seventh month.

The dollar traded at $1.5535 per euro at 6:04 a.m. in

Tokyo, after falling 0.2 percent yesterday. It touched

the all- time low of $1.6019 on April 22. The Swiss franc

was at 1.0361 per dollar following a 0.5 percent increase.

The yen was little changed at 107.83 per dollar and

167.52 per euro, after touching 168.04 yesterday,

the lowest since July 23, 2007.

The U.S. Dollar Index traded on ICE futures, which

tracks the greenback against the currencies of six U.S.

trading partners, fell yesterday for a third day,

dropping 0.1 percent to 73.440.

The dollar has traded in a range of $1.5300 to $1.5850

against the euro since the beginning of May. It will rise

to $1.50 by year-end, according to the median forecast

of 39 analysts surveyed by Bloomberg News.

UPDATES ON JUNE 18 2008

2008-06-18T00:04:00.000-07:00

JUNE 18 WEDNESDAY

Dollar Trades Near One-Week Low; Traders Trim Bets on Rate Rise

The dollar traded near a one-week low against the euro

as investors bet the Federal Reserve will keep interest rates

unchanged next week and the European Central Bank will

increase borrowing costs next month.

The U.S. currency was also near its lowest in a week

against the yen after reports in the U.S. yesterday

showed housing starts fell in May to a 17-year low and

industrial production unexpectedly declined. The British

pound fell before the release today of minutes from the

most recent Bank of England meeting.

The dollar traded at $1.5482 per euro as of 7:20 a.m.

in London from $1.5511 late yesterday, when it fell to a

one-week low of $1.5552. The U.S. currency was little

changed at 108.07 yen, near a one-week low of 107.54

yen and down from a four- month high of 108.58 set

June 16. The yen was at 167.33 per euro. It touched

167.84 yesterday, the weakest since July.

The dollar may fall to $1.5550 per euro and 107.60

yen today, Soma forecast.

UPDATES ON JUNE 17 TUESDAY

2008-06-17T01:20:00.000-07:00

JUNE 17 TUESDAY

Dollar Falls for Second Day Against Euro Before Housing Report .

The dollar fell for a second day against the euro before

government housing and inflation reports that may

add to speculation the Federal Reserve will delay

increasing interest rates.

The currency declined from a four-month

high versus the yen as economists at Moody's

Investors Service Inc. and ABN Amro Holding

NV said the Fed won't be in a hurry to raise

borrowing costs. Korea's won rose for a

second day after the government said it

will use a stronger currency to help slow

inflation.

The dollar declined to $1.5534 per euro at 7:23 a.m

. in London, from $1.5477 in New York yesterday.

The U.S. currency fell to 107.89 yen from 108.22

yesterday, when it rose to 108.58 yen, the highest

level since Feb. 14. The yen traded at 167.60 a euro

after dropping to 167.84, the weakest since July 23,

when it reached a record low of 168.99. It was at

167.49 yesterday.

UPDATES ON JUNE 13 FRIDAY

2008-06-13T00:38:00.000-07:00

JUNE 13 FRIDAY

The dollar fell to session lows versus the euro and traded

flat against the yen as investors took profits ahead of the

weekend after recent strong gains in the U.S. currency,

traders said.

A government report on Friday showed U.S. personal

spending rose in April in line with forecasts and a key

measure of inflation moderated.

The dollar garnered broad support this week from

a further retreat in oil prices from last week's record

$135.09 per barrel and a jump in U.S. Treasury yields.

The euro zone common currency was headed for

a second month of declines versus the greenback,

according to Reuters data.

The dollar index, which tracks the value of the greenback

against a basket of six currencies, rose.

UPDATES ON JUNE 11 2008

2008-06-10T23:07:00.000-07:00

JUNE 11 WEDNESDAY

Dollar Rises to 3-Month High; Fed May Show Inflation Concern .

The dollar rose to a three-month high against the yen

on speculation Federal Reserve officials

speaking today will highlight the risk of

inflation.

The dollar climbed to 107.72 yen, the highest

level since Feb. 26, before trading at 107.63 as

of 1:49 p.m. in Tokyo from 107.44 in New York

yesterday. It was also at $1.5475 per euro,

from $1.5467 yesterday. It has surged 2

percent the past two days, the most since

November 2005. The euro traded at 166.54

yen from 166.17 yen in New York. .

The U.S. currency may rise to 108 yen today, Kato said.

Futures on the Chicago Board of Trade showed

a 58 percent chance yesterday the Fed will

raise its 2 percent target rate for overnight

lending between banks by at least a quarter

point at its Aug. 5 meeting, compared with

32 percent the previous day. The contracts

showed a 96 percent chance the Fed will

increase the rate by December, up from

60 percent odds a week ago.

The Australian dollar fell to 94.39 U.S.

cents, the lowest level since May 16, after

an industry report showed consumer

confidence in June tumbled to its

lowest in almost 16 year

The New Zealand dollar dropped as low

as 75.03 U.S. cents, the weakest since

Jan. 23, amid expectations local interest

rates will decline while the Fed may raise

borrowing costs.

The U.S. currency traded at $1.9549 against

the British pound from $1.9544 yesterday, and was

at 1.0429 versus the Swiss franc from 1.0418.

The dollar has fallen 9.6 percent against

the euro and 7.3 percent versus the yen

since Sept. 18, when the Fed began to

lower borrowing costs from 5.25 percent.

The U.S. dollar index traded on ICE futures

in New York was at 73.610, following a 1.2

percent gain yesterday that was the biggest

since Dec. 14. The index tracks the dollar

against the currencies of six major trading

partners including the yen, euro and pound.

UPDATES ON JUNE 10 2008

2008-06-09T23:34:00.000-07:00

JUNE 10 TUESDAY

The euro was weaker against the dollar and sterling, but moved

higher against some of the other majors. The European currency

fell to a weekly low against the pound and turned away from a

multi-week best versus the dollar. The euro gained against

the yen and franc.

The euro turned away from a four-week high against the U.S. dollar.

After climbing as high as 1.5813 in the early-morning in New York,

the European currency dropped to 1.5719 in the mid-morning.

In after-hours trading Friday oil hit $139.12 - a trading record, though

it was down slightly Monday to $137.65 a barrel.

In other currencies, the British pound fell slightly to $1.9709, from

$1.9713 late Friday, while the dollar bought ¥105.13, up from

¥105.10 in New York.

UPDATES ON JUNE 5 2008

2008-06-05T01:12:00.000-07:00

JUNE 5 THURSDAY

The U.S Dollar index , a weighted measure against the Euro, Yen

and four other major currencies , gained as much as 0.3 %

yesterday.The U.S currency rallied after Federal Reserve Chairman

signalled , he was done cutting U.S borrowing cost for now.

UPDATES ON 29 MAY 2008

2008-05-29T02:26:00.000-07:00

MAY 29 2008

Dollar rose after a report showed new orders for US Durable goods

tumbled by less than expected in April , supporting the view the

Federal Reserve Bank may keep intrest rates on hold.

UPDATES

2008-05-28T02:49:00.000-07:00

MAY 28 WEDNESDAY

Intrest rate future show the Federal Reserve may start

to raise US borrowing cost by the end of the year as

the economy recovers and the inflation accelarates.

Seven intrest rate cut since September sent the

Dollar to an all time low against the Euro boosting

gold and other commodities

DOLLAR UPDATES

2008-05-20T10:58:00.000-07:00

MAY 20 TH TUESDAY

U.S. Dollar Falls on Oil Surge, Outlook Rates Will Stay High in Europe The dollar fell the most in almost two months against the euro as the price of oil rose above $129 for the first time and speculation increased that the European Central Bank will keep interest rates high.

UBS Cuts Yen Forecast to 105 per Dollar; Predicts Lower Pound

UBS AG, the world's second-biggest currency trader, reduced its forecast for the yen against the dollar on speculation investors' appetite for riskier assets will improve at the same time as Japanese economic growth slows.

Dollar Rises Vs Rupee To INR39.74 Vs INR39.56 Monday India Close MUMBAI -(Dow Jones)- The Indian rupee fell to a near two-month low against the dollar Tuesday on concerns that slumping local stocks will prompt overseas investors to pull out funds, traders said. At 0340 GMT, the dollar was changing hands at INR39.74, up from Monday's India close at INR39.56.