Archive for December 10th, 2012

Deeper Analysis

Strengthening Yen Depressed Japanese Growth

December 10, 2012

It’s easy to see why Japanese officials have been distressed about the overvalued yen.  The currency’s appreciation since the onset of the global financial crisis in August 2007 has correlated with relatively weak Japanese GDP growth including three distinct recessions.  The weakest value of the yen in 2007, 124.14 per dollar, was touched on June […] More

Central Bank Watch

Central Bank of Russia

December 10, 2012

Bank Rosii reduced the width of its interest rate band by increasing the overnight deposit rate by 25 basis points to 4.5% and cutting the foreign currency swap rate by a similar amount to 6.5%.  The main central bank rate, the 8.25% refinancing rate, was left unchanged.  It’s increase of 25 basis points in mid-September […] More

New Overnight Developments Abroad - Daily Update

Concern about Italy

December 10, 2012

Italy took a step closer to winter elections.  The highly respected Prime Minister Monti will resign after the 2013 budget is approved, and he is not expected to get reelected.  That will put the likelihood of Italy fulfilling its austerity promises in jeopardy. Share prices in Italy have tumbled 3.2% today, dragging down other European […] More