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US dollar''s mixed performance versus major currencies - NBK report
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US dollar''s mixed performance versus major currencies - NBK report
Economics 10/9/2011 5:35:00 PM
US dollar''s mixed performance versus major currencies - NBK report
KUWAIT, Oct 9 (KUNA) -- The US Dollar had a mixed performance against its major counterparts throughout last week as markets were torn between risk aversion and risk tolerance, a specialized report revealed here on Sunday.
The weekly report issued by the National Bank of Kuwait (NBK) said that additionally, investors watched closely a number of important central bank meetings that addressed the impacts of the slowing global demand and the contagion risks that accompanied the Euro zone's debt crisis.
It added that the Euro opened the week at 1.3387 but quickly lost grounds to reach a low of 1.3146. The currency gained momentum towards the end of the week as the European Union finance ministers announced they were examining ways of co-coordinating recapitalization of financial institutions, after they agreed that additional measures to support the region's banks are required urgently.
The report went on to say that on Thursday, the ECB boosted confidence in the market after announcing more liquidity to banks driving the Euro to a high of 1.3525. However, this trend reversed as Fitch cut Italy's and Spain's credit ratings on Friday afternoon, a move that knocked the wind out of the Euro driving it to close at 1.3377.
It said that the Sterling Pound started the week at 1.5584 but dropped dramatically after the BoE announced an additional 75 billion to its asset purchase program pushing it to the low of 1.5270. However, the currency recouped most of its losses to close the week at 1.5563. The Japanese Yen range traded throughout the week between 76.50 and 77.00. The Swiss franc started the week at 0.9082 but weakened against the greenback reaching a low of 0.9316, before closing the week at 0.9272.
On the other hand, manufacturing in the US the report said expanded for the 26th consecutive month at a rate slightly higher than expected, despite signs of a slowdown in the economic recovery. The ISM manufacturing index rose to 51.
6 from a previous 50.6 in August. In parallel, services industries expanded in September but at a slower pace, a sign that the recovery is struggling to gain momentum. The ISM non-manufacturing index fell to 53.0 from a previous 53.3.
For his part, Federal Reserve Chairman Ben Bernanke said that the Federal Reserve could take further steps to sustain a recovery that's "close to faltering" and cautioned lawmakers against making changes in fiscal policy that could harm growth.
He also reiterated some options he had mentioned previously, that the Fed could give more information about its pledge to keep interest rates low at least through mid-2013, reduce the rate paid on bank deposits, or buy more securities. Additionally he signaled that high inflation this year would not stop the Fed, stating it has not become "ingrained" in the economy. The Chairman also added that the Fed needs "to make sure that the recovery continues and doesn't drop back and that the unemployment rate continues to fall downward." Employers hired more workers than expected in September and job gains for the prior two months were revised higher easing recession fears. The unemployment rate remained unchanged adding pressures on President Obama and the Fed to produce a plan to drive a stronger recovery, according to the report.
Nonfarm payrolls rose 103,000, but part of September's good number was due to the return of 45,000 striking communications workers. Excluding those workers, employment increased by a meager 58,000. Job growth is still below the needed pace to pull down unemployment, but the report had a stronger tone than market expectations.
The length of the average work week rose and revisions showed 99,000 more jobs were added in July and August than initially reported. Additionally, claims rose less than forecast last week to a level that shows companies may be starting to slow the pace of firings. Applications for jobless benefits increased by 6,000 in the week to 401,000, below expectations of an increase to 411,000, it concluded.
http://www.kuna.net.kw/NewsAgenciesPublicSite/ArticleDetails.aspx?id=2195314&Language=en
US dollar''s mixed performance versus major currencies - NBK report
KUWAIT, Oct 9 (KUNA) -- The US Dollar had a mixed performance against its major counterparts throughout last week as markets were torn between risk aversion and risk tolerance, a specialized report revealed here on Sunday.
The weekly report issued by the National Bank of Kuwait (NBK) said that additionally, investors watched closely a number of important central bank meetings that addressed the impacts of the slowing global demand and the contagion risks that accompanied the Euro zone's debt crisis.
It added that the Euro opened the week at 1.3387 but quickly lost grounds to reach a low of 1.3146. The currency gained momentum towards the end of the week as the European Union finance ministers announced they were examining ways of co-coordinating recapitalization of financial institutions, after they agreed that additional measures to support the region's banks are required urgently.
The report went on to say that on Thursday, the ECB boosted confidence in the market after announcing more liquidity to banks driving the Euro to a high of 1.3525. However, this trend reversed as Fitch cut Italy's and Spain's credit ratings on Friday afternoon, a move that knocked the wind out of the Euro driving it to close at 1.3377.
It said that the Sterling Pound started the week at 1.5584 but dropped dramatically after the BoE announced an additional 75 billion to its asset purchase program pushing it to the low of 1.5270. However, the currency recouped most of its losses to close the week at 1.5563. The Japanese Yen range traded throughout the week between 76.50 and 77.00. The Swiss franc started the week at 0.9082 but weakened against the greenback reaching a low of 0.9316, before closing the week at 0.9272.
On the other hand, manufacturing in the US the report said expanded for the 26th consecutive month at a rate slightly higher than expected, despite signs of a slowdown in the economic recovery. The ISM manufacturing index rose to 51.
6 from a previous 50.6 in August. In parallel, services industries expanded in September but at a slower pace, a sign that the recovery is struggling to gain momentum. The ISM non-manufacturing index fell to 53.0 from a previous 53.3.
For his part, Federal Reserve Chairman Ben Bernanke said that the Federal Reserve could take further steps to sustain a recovery that's "close to faltering" and cautioned lawmakers against making changes in fiscal policy that could harm growth.
He also reiterated some options he had mentioned previously, that the Fed could give more information about its pledge to keep interest rates low at least through mid-2013, reduce the rate paid on bank deposits, or buy more securities. Additionally he signaled that high inflation this year would not stop the Fed, stating it has not become "ingrained" in the economy. The Chairman also added that the Fed needs "to make sure that the recovery continues and doesn't drop back and that the unemployment rate continues to fall downward." Employers hired more workers than expected in September and job gains for the prior two months were revised higher easing recession fears. The unemployment rate remained unchanged adding pressures on President Obama and the Fed to produce a plan to drive a stronger recovery, according to the report.
Nonfarm payrolls rose 103,000, but part of September's good number was due to the return of 45,000 striking communications workers. Excluding those workers, employment increased by a meager 58,000. Job growth is still below the needed pace to pull down unemployment, but the report had a stronger tone than market expectations.
The length of the average work week rose and revisions showed 99,000 more jobs were added in July and August than initially reported. Additionally, claims rose less than forecast last week to a level that shows companies may be starting to slow the pace of firings. Applications for jobless benefits increased by 6,000 in the week to 401,000, below expectations of an increase to 411,000, it concluded.
http://www.kuna.net.kw/NewsAgenciesPublicSite/ArticleDetails.aspx?id=2195314&Language=en
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