| Australia's Dollar Rises After Holding Above Key Chart Level
Feb. 7 (Bloomberg) -- The Australian dollar rose after it held above a key level on charts traders watch to predict price movements. Fibonacci levels used by traders to indicate price trends show 77 cents as an important technical point based on the currency's range over the last six months. The Australian dollar has held above this level every day except one since Jan. 25, after a two-day 2.5 percent drop on a report showing consumer prices declined for the first time in almost eight years. ``The Australian dollar has found a technical base since the sell-off after the consumer price,'' said Tony Morriss, currency strategist at Australia & New Zealand Banking Group Ltd. in Sydney. ``The fact that we've found such good support around the 77 cents has turned the focus to the upside.'' The Australian dollar bought 77.83 U.S.
Central Bank Boosts Ruble
The Bank of Russia on Thursday has boosted the ruble against the U.S. dollar-euro currency basket by 9 kopecks, 0.3 percent up, contrary to all expectations. The balance in the two-currency basket was changed at the end of the trading day 55 percent of the U.S. dollar and 45 percent of the euro. Economists believe that Russian banking officials are gradually changing the model of the country's currency and monetary policy.
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Rydex Introduces ETF Tracking Japanese Yen
Rydex Investments has launched a Japanese yen exchange-traded fund, the latest of eight that the firm offers to advisers. Tim Meyer, ETF business manager, said Rydex wants to offer diversification beyond equities, fixed income and cash. The new ETF is called the CurrencyShares Japanese Yen Trust and trades under the ticker FXY. It should start trading this week. The other ETFs offered track the euro, the British pound, Swiss franc, Swedish krona, Mexican peso and Canadian and Australian dollars. Rydex also offers a mixed foreign currency ETF. All of the currency ETFs invest via demand deposit accounts. "A lot of individual investors dabble in forex accounts," Meyer said. "But this allows only as much leverage as is allowed in a brokerage account." That makes it a safer bet for most people, he said.
S.Lanka stocks at fifth straight high on earnings
COLOMBO, Feb 9 (Reuters) - Sri Lankan stocks rose to a fifth consecutive life closing high on Friday as investors bought select shares amid a batch of quarterly corporate earnings, traders said. The Colombo All Share index ended 0.42 percent firmer at 2,973.57 points, surpassing the previous life closing high of 2,961.20 points hit on Thursday. However lagging trades must still be factored into the market, and the close could still change. The bourse has hit a string of successive life closing highs in recent weeks, in part boosted by a raft of well-received corporate quarterly earnings results that are still trickling in. "The market is looking quiet active. With corporte results coming in all around there was buying coming into the market," said Prasanna Chandrasekera, assistant manager at John Keells Stockbrokers in Colombo.
Dollar Has Weekly Gain Versus Euro; Reports Show Quicker Growth
Jan. 26 (Bloomberg) -- The dollar posted a weekly advance against the euro and approached a four-year high versus the yen after U.S. durable goods orders and new home sales rose, suggesting economic growth is quickening. The U.S. currency also rose this week against the British pound and Swiss franc as the reports cooled speculation the Federal Reserve's next move will be to cut interest rates. The yen also fell after U.S. Treasury Undersecretary Tim Adams said markets should set exchange rates, indicating the U.S. may resist any European demands to bolster the yen. ``The economy even may pick up steam,'' said Richard Franulovich, a senior currency strategist at Westpac Banking Corp. in New York. ``There is a risk the Fed may hike rates once more this year if the data continues to show strength.
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