Archive for October 20th, 2008

Currency Markets in the News

Is the Dollar Getting Too Strong?

October 20, 2008

If the U.S. recession were not associated with dysfunctional credit markets and if other economies were not also in recession, the dollar would be falling and providing needed support for net exports by enhancing the competitiveness of U.S. exports in foreign markets and of domestically produced goods that face imported competition.  Economists call such mechanisms […] More

Bank of Canada to Cut Rates Tuesday

October 20, 2008

The seventh of eight scheduled Bank of Canada interest rate policy announcements at 13:00 GMT on Tuesday will contain a target rate cut of at least 25 basis points and probably one of a half-percentage point to 2.0%.  In an unscheduled and coordinated move on October 8th, the Bank of Canada was one of seven […] More

New Overnight Developments Abroad - Daily Update

New Overnight Developments Abroad: Money Market Tensions Ease a Little Further

October 20, 2008

Stocks rose in most Asian markets and Europe, and the dollar and bond yields are lower amid a further drop in money market spreads. There has been a positive response to a report that some large U.S. banks have lent funds to European counterparts. The dollar fell 1.4% against the Australian dollar, 0.8% versus sterling, […] More