Dollar seems to be eating the dust these days!

Well at least it is official at last, almost all the currencies are leaving the Dollar eating their dust, even the Yen is becoming resurgent to the Dollar much to the chagrin of the central bank of Japan, even if they wanted to fiddle the forex market which is what they always do to keep the Yen down, but this time around the sentiment of the whole market is against that.
Today saw the Indian Rupee end a losing streak against the Dollar and surge ahead to cap all the losses it had made in the last few days. With the Bull market showing no signs of slowing down and a very strong resurgent economy, this is to be expected. But on a cautious note to all the forex dealers out there, keep in mind that the Indian Rupee is not yet a free flowing currency, that is, it has not yet become Fully Convertible and in such scenarios, the Reserve bank of India is a whole lot more protective towards the Indian rupee and they will ensure that it swings either way within a very narrow margin.
But it is this very margin, that is the 1$ to 39 INR range that is giving much excitement and joy to the forex dealers world wide. One can even say that no other currency is showing so much volatility within such narrow ranges and people are just making bundles on mere movements of just 10 paisa on either side. It is like a Forex market within a Forex market, with only 2 players, the Indian rupee and the U.S Dollar. What goes up comes down in the afternoon and by the evening, the strong economic data of the day boosts the Indian rupee all over again. So people get to make money not just once or twice but three times a day. It is no wonder that nearly all the forex dealers that I met today have a big smile on their faces and they just cant seem to stop talking about the Indian Rupee and the falling Dollar!

economy,u.s dollar,yen,currency,

Dollar goes down!

With the current Economic storm far from over, the Dollar plunged to all new lows against a host of major currencies ranging from the Euro to the Yen. The Japanese central bank as well as the group of 7 decided not to intervene in the Dollar's woes for the moment.
Since the sentiment of the market is very much against the Dollar, the Japanese central bank well knows that intervening in the market now will be like throwing the money into a bottomless pit. So that is not going to happen for the moment. As for the following week, the Dollar may not see that many gains,as the economic trends indicate. What is more, the Dollar may even go Subterranean!
dollar,yen,euro,forex,

Rupee appreciates further!

With the Rupee appreciating further the exporters woe's only seems to be getting bigger as the Rupee is eating into their profits.as a result of this resurgent economy,the service sector has now started to look steadily at the European markets as the Euro seems to be the perfect answer to the rising rupee.
The currency dances apart,economic data of the Europe is much more promising than the United states and most of the Indian companies that have thought of diversification and asset and portfolio management are now choosing Europe over the United states!is this a state of things to come,a stronger Euro with all currencies pegged to it?

Rising rupee makes the exporters sweat!

With the rupee rising steadily against the U.S dollar,most of the exporters are already feeling the pinch as they can see their profits evaporating fast as a result of the falling Dollar.it is not only the exporters who are feeling the pinch but also the other companies that provide/export their services to their western counterparts.and since they get paid in the U.S dollar,their profits are also fast drying up.

Naturally the BPO's come under this list.the key question on everyone's mind is that will India follow Japan's route.that is,will the RBI intervene in the market and make sure that the dollar does not weaken any more.such solutions are quite risky and any gains made by such moves is temporary because sooner or later the natural order of the currencies will prevail.Japan knows that they are only postponing the inevitable and hopefully India will realise this as well!

japan,exporters,united states,currency,

Japanese yen on the rise again??

This is nothing new.with the Japanese yen on the rise again against the U.S dollar all eyes are on the Japanese central bank.if things hold true to form then the Japanese central bank will intervene shortly to make sure that the Yen stays undervalued.this sort of intervention is causing havoc amongst the other Asian currencies and it is high time that Japan let the yen 'float free'.as such this is ripe time for the forex traders to buy the yen and then sell it as soon as the yen starts to weaken against the dollar which will happen as soon as the Japanese central banks intervene.so may sure that you cover all the press releases or interviews by any staff of the Japanese central banks as they are sure to give some hint as to the timeline!

japan,yen,united states,currency,

The U.S economy goes goldilocks!

With disappointing data coming from certain sectors some of the economic pundits are already calling it the end of the Dollar rule and are advising many to look towards the euro for the next leader in the currencies.it may seem that the dollar's hey days are over and that the U.S economy is indeed in a bear hug,but all that aside,what goes down must come up.
All the eyes are now on the september 18th Fed meeting durnig which Alan Greenspan may decide to hike the interest rates.he has to make certain moves with regard to the U.S economy and how much effect that will have in lessening the bear hug is anybody's guess.and everyone included seems intent on being the goldilocks in this story.

Gulf Arab Banks seek individual interest rates!

After the single currency project was thrown into disarray by Kuwait removing its currency from being pegged to the U.S dollar so as to curb rampant inflation,the 6 gulf countries met today to decide on central bank rates.and they have all decided to apply their own individual central bank rates rather than have a single prevalent interest rate to offset the inflation.of course,this news would only make foreign currency traders happy as they well know that any interest rate differential between central banks only means more money in their pockets.but can inflation truly be curbed by just raising and lowering of the interest rates.such policies may work in the short term but in the long term??

kuwait,gulf,oman,u.s dollar,inflation,

Choppy week ahead for asian stocks!

With thew Fed rumored to cut rates soon at its meeting sometime on September 18th,all expectations are high that this will ease the credit worries in the market.this subprime scare is kind of like dropping a rock in the middle of the pond and to see the waves continuously washing over the market.that is what is happening,the markets are yet to settle down and the U.S payroll data is nit helping matters any bit yet.but all of that has made sure that the Fed will take action but to what extent is the question on every traders lips.
With the Asian markets bound to feel the impact of the dollar surges,the current season looks to be very volatile.with the current scenario,investors should be wary of making any sudden changes and wait for the markets to settle down a bit and see how they react after the Fed cuts rates on the 18th.

united states,fed,markets,asia,currency,