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
