The yen fell against most major peers as Reuters reported that Japan said it will likely increase its reserves for intervening in the currency market. The dollar was poised for a weekly loss against 12 of its 16 most-traded counterparts as positive U.S. economic data spurred investments in riskier assets. Reports next week may show confidence among U.S. consumers improved even as housing remained weak.
The yen weakened against 13 of its 16 major peers. Japan will likely increase its reserves set aside for intervening in the currency market by 5 trillion yen ($60 billion) in the next fiscal year, Reuters reported, citing unidentified people. The pool is currently 145 trillion yen, according to the report.
The yen gained 12.1 percent this year according to Bloomberg Correlation-Weighted Currency Indexes, which track a basket of 10 developed-country currencies.
“Recoveries around the world appear to be picking up,” said Tsutomu Soma, a bond and currency dealer at Okasan Securities Co. in Tokyo. “There seems to be risk-on sentiment, which is likely negative for the yen and dollar.”
Saturday, December 25, 2010
Wednesday, December 22, 2010
Bloomberg | Dollar & Pound News
The Dollar
The dollar was boosted against the euro by the demand for safety and optimism the world’s largest economy is improving. The Commerce Department will report Dec. 22 that the U.S. economy grew at a 2.8 percent annual rate during the third quarter, up from its initial estimate of a 2.5 percent pace, according to the median of a Bloomberg News survey of 61 economists.
The Dollar Index, which tracks the greenback against the currencies of six major U.S. trading partners including the euro, yen and pound, rose as much as 0.4 percent.
The Pound
The pound rose against the euro and the dollar after the Confederation of British Industry said in a report the Bank of England will start raising interest rates within six months.
Interest Rate
Minutes of the Bank of England’s Dec. 9 Monetary Policy Committee meeting, due Dec. 22, will likely show members remained split in their decision to keep the key interest rate at a record low 0.5 percent and to hold the asset-purchase program at 200 billion pounds.
The dollar was boosted against the euro by the demand for safety and optimism the world’s largest economy is improving. The Commerce Department will report Dec. 22 that the U.S. economy grew at a 2.8 percent annual rate during the third quarter, up from its initial estimate of a 2.5 percent pace, according to the median of a Bloomberg News survey of 61 economists.
The Dollar Index, which tracks the greenback against the currencies of six major U.S. trading partners including the euro, yen and pound, rose as much as 0.4 percent.
The Pound
The pound rose against the euro and the dollar after the Confederation of British Industry said in a report the Bank of England will start raising interest rates within six months.
Interest Rate
Minutes of the Bank of England’s Dec. 9 Monetary Policy Committee meeting, due Dec. 22, will likely show members remained split in their decision to keep the key interest rate at a record low 0.5 percent and to hold the asset-purchase program at 200 billion pounds.
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