| Currencies: Yen rallies after hitting a fresh low against euro
NEW YORK: The yen had its biggest gain in two weeks against the euro Wednesday, rebounding from a record low, as a German official said the Japanese currency's decline might be a topic of discussion during next month's Group of Seven meeting. The currency's "lasting weakness is a cause for concern," Bernd Pfaffenbach, a deputy German economy minister, said in an interview Wednesday at the World Economic Forum in Davos, Switzerland. Traders started driving the yen higher in New York early Wednesday after Reuters reported that European governments want the G-7 to strengthen its criticism of the currency's decline. "Europe would like to see a stronger message on the yen and people have started to bail out" of wagers on euro gains versus the yen, said C.J. Gavsie, managing director for currency trading at BMO Capital Markets in Toronto.
Forex Daily Technical Report Yen Rebounds Further, German Ifo and ...
The Japanese yen strengthen further across the board today as traders continues to take profit on carry trades. There are speculations that European officials want to complain over the yen's weakness at next months G7 meeting. Eurozone finance ministers will draft a common position for the meeting and it's believed that they will include a more forceful message about yen's weakness. Though, Japanese Finance Minister Koji Omi has denied he had heard about yen being a topic in the upcoming meeting. Further support on yen was provided after BoJ policy Board Member Miyako Suda said that policy makers shouldn't spend too long examining economic data before raising interest rates, if it is convinced the economy is moving in line with its scenario. He said that "by taking too much time in confirming, there is a risk of being too late in raising rates, forcing us to step up the pace of future rate hikes." Overnight, RBNZ kept rate unchanged at 7.25% as widely expected.
NAM vice chair urges senate committee, China must move faster on ...
Michael Campbell, Chairman, President and Chief Executive Officer of Arch Chemicals, Inc., based in Norwalk, Connecticut, and Vice Chairman of the National Association of Manufacturers, today told a Senate panel that China needed to allow for greater movement in its currency or risk growing frustration and possible backlash that could damage the global economy. Arch Chemicals is a global manufacturer of biocides, pool chemicals and other specialty chemicals. Campbell also serves as Chairman of the NAMs Board-level U.S.-China Business Relations Task Force. Testifying before the Senate Committee on Banking, Housing and Urban Affairs, Campbell said, On the issue of Chinese currency, manufacturers are united. China needs to allow significant appreciation of its currency with the ultimate goal of seeing it float freely in open currency markets.
Canadian Dollar Declines as Short Bets Are Near Record High
Jan. 22 (Bloomberg) -- Canada's dollar declined the most in about a week, trading near a 14-month low, as short bets against the currency are near a record. Bets by hedge funds and other large speculators on a decline in the Canadian dollar exceeded wagers on a gain by 78,967 on Jan. 16, down from a record 84,906 a week earlier, according to the Washington-based Commodity Futures Trading Commission. The data, which is provided weekly, was released on Jan. 19. ``I'm not all that optimistic on the currency just looking at the degree to which the market looks bearish on the Canadian dollar,'' said Naomi Fink, chief North American currency strategist at BNP Paribas Securities SA in New York. The Canadian dollar fell to 85.03 U.S. cents at 10:10 a.m.
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