Larry's Blog
Unseating the Dollar's Reserve Currency Hegemony Still a Long Shot
October 20, 2009
The dollar has not performed well in 2009, and market chatter has been full of speculation about whether orderly depreciation might mutate into a disorderly rout. Market players want to know if the dollar’s dominance in the international monetary system might be replaced or get shared. This is not the first year that such questions […] More
Central Bank Watch
Bank of Canada: No Rate Changes and No Surprises
October 20, 2009
The seventh of eight scheduled policy announcements in 2009 kept a target Canadian overnight rate of 0.25% and a Bank Rate of 0.5%. The promise not to lift those rates before mid-2010, contingent on inflation consistent with the Bank’s forecast, was also kept. These policy parameters were first put in place six months ago after […] More
New Overnight Developments Abroad - Daily Update
New Overnight Developments Abroad: Mild Protest of Dollar Softness From ECOFIN
October 20, 2009
The dollar slid 0.3% against the yen, 0.2% versus the Swiss franc, and 0.1% against sterling and the euro. The greenback recovered 0.4% against the Canadian and New Zealand dollars and 0.1% versus the Australian dollar. Several key psychological levels are in play: JPY/USD 90.0, Swissy and C-dollar parity with the U.S. dollar, and EUR/USD […] More
