Archive for September 8th, 2008

Currency Markets in the News

Trade-Weighted Dollar Up 9.3% in Less Than 8 Weeks

September 8, 2008

The Federal Reserve’s dollar index against other major floating currencies is 9.3% stronger than its low-point on July 15th.  This has been a powerful adjustment compressed into a very short time interval.  Such a rise extended for a full-year period would double the dollar’s value.  That is clearly not going to happen but underscores that […] More

Some Musings About the Nationalization of FNMA and Freddie

September 8, 2008

The immediate reaction of financial markets was understandable in all respects.  Near-term prospects for the global financial system look better, and that noise you hear is a collective whew.  Stocks have advanced.  Bond prices fell.  Non-U.S. sovereign bonds and equities followed the U.S. lead.  The dollar improved, reminiscent of the catalytic role played by the […] More

New Overnight Developments Abroad - Daily Update

New Overnight Market Developments Abroad: Markets React Sharply to Bailout of GSE's

September 8, 2008

The U.S. Treasury took control of Fannie Mae and Freddie Mac over the weekend.  Sovereign bond yields and equities soared.  Carry trading resumes. Stocks in Japan, Germany, Hong Kong, Australia, Thailand, India, Britain, and the Philippines up at least 3%.  Paris and Singapore stocks up more than 4%.  South Korean exchange advanced over 5%. Ten-year […] More