| Venezuela Issues $5 Billion in Bonds, Investment Rating Improves
Caracas, February 9, 2007 (Venezuelanalysis.com) Ricardo Sanguino, head of the Venezuelan National Assemblys finance commission, announced Wednesday that the government planned to issue US$5 billion (3.85 billion) in bonds, as part of a drive to curb a growing rise in the inflation rate. Sanguino said that Venezuelas state-owned oil company, PDVSA, would sell US$3.5 billion (2.7 billion) in bonds, and the Ministry of Finance would issue another US$1.5 billion (1.16 billion) in joint "Bonds of the South" with Argentina, according to the AP. Although dates for the sale of the bonds were not given, Sanguino said the bonds would most probably be issued in the local currency, Bolivars, at the official US dollar exchange rate of 2,150 bolivars per dollar. In November last year Venezuela and Argentina successfully sold their first US$1 billion (770 million) worth of Bonds of the South.
Forex - Yen falls further, lifts euro, dollar to session highs
SINGAPORE (XFN-ASIA) - A weak Japanese yen propelled the US dollar and the euro higher in Asia and both currencies rose to session highs in the afternoon, with the euro particularly buoyant ahead of tonight's European Central Bank meeting. The ECB is widely expected to keep the official refinance rate at 3.5 pct tonight. .
Treasury chief can give me pay increase, save world
THOSE OF US paid in Japan's chronically weak currency should rest easy: Henry Paulson is on the case. The U.S. Treasury secretary on Jan. 31 said he's watching the value of the yen "very, very carefully." Well, that's a huge load off my mind, especially as Paulson heads to Essen, Germany, for a Feb. 9-10 meeting of the Group of Seven ministers. There, perhaps, Paulson's counterparts from Canada, France, Germany, Italy, the U.K. and even Japan will look very, very carefully over his shoulder as he watches the yen sit there weakly on his broker screen. Watch is probably all they will do. For one thing, the G-7's power isn't what it used to be. Without the inclusion of China, India and other developing powers, the world's industrialized elite has little influence over global trends these days.
Morning Forex Briefing
The USD is mixed to start New York this morning, unchanged against the Yen, lower against the GBP and steady against the EURO. Traders appear heavily focused on the BOJ rate announcement on Thursday and overnight the markets appear to have dropped their forecasts for a rate hike. Currently the interest rate markets are pricing in a roughly 30% chance that the BOJ will hike rates 25 BP; down from the 80% chance forecast only Tuesday morning. Overnight saw the usual option-related defense of the USD/JPY on the approach to 121.00 handle with a high print at 120.88 on lighter volume. Exporters were again active on the sell side and rumors that the MOF encouraged a car company to buy Yen also helped cap the potential rally. USD/JPY trading near the lows at the start of New York trade.
|
