| FOREX: Ringgit Expected To Be Firmer Against US Dollar Next Week
KUALA LUMPUR, Feb 3 (Bernama) -- The ringgit is likely to be firmer against the U.S. dollar next week supported by brisk demand from foreign banks, dealers said. Despite the ringgit seeing little movement over the past few days, a dealer anticipates that the currency could strengthen to 3.4000 against the greenback in the next couple of weeks due to Malaysia's strong economic fundamentals. He said Deputy Finance Minister Datuk Dr Ng Yen Yen's statement on Tuesday had somewhat triggered confidence of the ringgit. Ng had said that the government would not intervene unnecessarily in the foreign exchange market, and was confident the floating ringgit "can handle any stress". In allaying concerns over the recent marked appreciation in the Malaysian currency she said: "We need not worry too much about this concern." Another dealer said the ringgit would still be moving in a tight range next week, and is likely to follow the movement of the yuan.
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US Treasury secretary says Japan allows the yen's value to be set ...
WASHINGTON -- Treasury Secretary Henry Paulson said Tuesday that he was not concerned about the lows being set by the Japanese currency against the U.S. dollar because those values are being set in open markets. Paulson was pressed on the issue during congressional testimony by Rep. Sander Levin, who questioned why the Bush administration was not doing more to encourage the Japanese government to halt the slide in the yen against the dollar. American automakers believe that decline has given their Japanese competitors a tremendous price advantage. Levin, whose state has car manufacuting plantsd, said that European auto companies were complaining about the yen's decline against their currencies. He suggested that Paulson should join forces with European finance ministers to lobby Japanese officials on the issue when the countries meet for the Group of Seven finance ministers meeting in Essen, Germany this weekend.
Traders Pay Biggest Premium in 3 Years for Yen Options(Update1)
Feb. 7 (Bloomberg) -- Currency traders are paying the most in almost three years for options that protect against a potential rebound in the yen versus the euro, before Group of Seven finance officials meet in Germany later this week. Investors are hedging against the chance G-7 nations try to support the yen after it fell last month to a record low against the euro. German Finance Minister Peer Steinbrueck last week said the G-7 will discuss the drop in Japan's currency, which has weakened as the Bank of Japan kept its benchmark interest rate at 0.25 percent, the lowest among major economies. Traders are buying insurance against an unraveling of the so-called carry trade, in which investors borrow in Japan and buy debt in economies such as the euro region, where they can get 2 percentage points or more in extra yield.
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