Market Review – 14/10/2010 23:03 GMTDollar falls to a fresh 15-year low against yenThe greenback dropped against most major currencies on Thursday after Singapore widened and raised the trading band of the Singapore dollar. The dollar index fell to 76.259, the lowest since December 2009, while the greenback sank to a fresh 15-year low against the Japanese yen.
The greenback tumbled from 81.85 versus the Japanese yen in Australia due to dollar’s broad-based selloff versus major and Asian currencies. The Monetary Authority of Singapore widened the trading band of the Singapore dollar and price later pierced through 81.00 to a fresh 15-year low of 80.88 in Europe. However, dollar staged a strong rebound from there on dollar’s broad-based recovery after Japanese Prime Minister Naoto Kan said that the government would take decisive steps on foreign exchange if necessary and dollar rose to 81.68 in NY afternoon.
The single currency rallied from 1.3955 on dollar’s broad-based weakness and climbed to a near 9-month high of 1.4123 in European morning. Euro then eased from there after triggering stops at 1.4100/10 and edged lower to 1.4036 in NY session on dollar’s rebound.
The British pound rallied from 1.5891 on dollar’s broad-based selloff and penetrated 1.6000 level to a fresh 8-month high of 1.6067 in European morning. However, cable retreated from there on profit-taking together with dollar’s rebound and ratcheted lower to 1.5971 in NY mid-day.
Economic data to be released on Friday include:
Japan Capacity utilisation, Industrial prod’n, EU HICP final, Trade balance (euro),U.S. CPI, CPI core, Real earnings, Retail sales, Retail sales less auto, Empire state mfg, U. Michigan survey Prel., Business inventories, Fed Budget.
