Dollar Slightly Firmer as US Trade Deficit Narrows

The US trade deficit narrowed to $58.21 billion in March from $61.71 billion in February, according to government data released Friday morning. Analysts were expecting a deficit of $61 billion.

The dollar pared a fraction of its early losses versus the euro after the release. Minutes after the release, the buck traded at 1.5442 against the euro, 102.90 versus the yen, and 1.9472 against the sterling.

 

Technorati Tags: Currencies, Economy, USA, USD, fvarga

Asian Currencies Decline This Week

Asian currencies fell this week, led by South Korea’s won, on speculation record oil prices will damp the region’s economic growth and the Federal Reserve may have finished cutting interest rates.

All 10 of Asia’s most-active currencies outside Japan weakened against the dollar over the five days as investors shunned emerging-market assets and crude oil climbed to an all- time high.

The MSCI Asia Pacific Index of regional shares fell the most in almost two months while HSBC Holdings Plc’s Asian Bond Index declined 1.5 percent, extending losses to a fourth week.

The won had the biggest weekly loss in two months and India’s rupee fell to the lowest since August.

At its close in Taipei trading, the NT dollar dropped NT$0.303, or 1 percent, to NT$30.824 —the lowest since March 17, when the local currency closed at NT$30.850 against the greenback, Taipei Forex Inc’s tallies showed.

For the first four days of the week, foreign investors offloaded a net NT$29.76 billion in local stocks, with trading restricted to a narrow range, the stock exchange’s tallies showed.

 

Technorati Tags: Forex, Currencies, Asia, Capital, fvarga

The Barrel of Oil Exceeding USD 125 in New York

The price of oil passed Friday for the first time the threshold of 125 dollars in New York, continuing a mad rush initiated by fears about supply and nourished by intense speculation.

Spectacular over one year, the price increase has been accelerated during the month: $ 100 on January 2, 105 dollars on March 6, 110 dollars March 13.

Since Monday, where prices have exceeded $ 120 for the first time, the excitement is dizzying and records are every day.

Today, prices went up to 125.48 dollars a barrel in New York and 124.91 dollars in London.

The sabotage on facilities of the Nigerian oil group Shell and renewed geopolitical tensions between the West and Iran, second largest producer within the Organization of the Petroleum Exporting Countries (OPEC) have served as a beginning last Friday to this last outbreak.

The main ingredient, since 2002, is the concern over the growth of oil demand in emerging countries, including China, knowing that the offer increases more slowly: year after year, the balance between supply and demand is narrowing.

In this context, the Organization of Petroleum Producers (40% of global production) did nothing to calm prices. Since September, the oil cartel contemplates, impassive, soaring prices.

Technorati Tags: Economy, Oil, fvarga

Euro Trades Above Eight-Week Low

The euro traded above an eight-week low against the dollar after European Central Bank President Jean-Claude Trichet said inflation remains the bank’s top priority, signaling policy makers won’t cut interest rates soon.

Inflation will stay high “for a rather protracted period” Trichet said at a press conference in Athens following the ECB’s decision to keep its main refinancing rate at 4 percent yesterday. The yen rose against all of the major currencies on concern slowing global growth will prompt investors to sell higher-yielding holdings funded in Japan.

The ECB is still in an inflation-fighting mode.

The fact there’s no signal for a rate cut is positive news for the euro.

The euro traded was little changed at $1.5401 at 6:10am in Tokyo, after erasing earlier losses that drove it as low as $1.5285 yesterday, the weakest since March 11.

 

Technorati Tags: Central Bank, Euro, ECB, fvarga