Foreign Exchange Insights and Next Week
Euro Can’t Shake Gloom
June 2, 2010
An analysis by Ralph Atkins, Frankfurt correspondent for the Financial Times, in Tuesday’s edition lays out four long-term scenarios for the Euroland’s sovereign debt problem and their respective implications for the euro. Bearing in mind the extreme and widespread gloom among analysts, I found the article’s framework to be a handy way to peer ahead. […] More
Deeper Analysis
Japanese Prime Ministers and the Yen
June 2, 2010
Prime Minister Hatoyama resigned today after only 8.5 months in office. Thirteen different men have been prime minister since the end of 1991, and Junichiro’s stewardship from April 2001 to September 2006 accounted for slightly more than 25% of that period. The average term of the other dozen prime ministers was about 14 months. This […] More
Central Bank Watch
No Policy Change From Bank of Thailand
June 2, 2010
Thailand’s policy interest rate has been at 1.25% since a 25-basis point cut in April 2009, which followed reductions of 100 bps in December 2008, 75 bps in January 2009 and 50 bps in February 2009. A rate level this accommodative is not consistent with Thailand’s economic circumstances. A statement released today concedes that GDP […] More
New Overnight Developments Abroad - Daily Update
Yen Falters After Japanese Prime Minister Resigns
June 2, 2010
The dollar rose 1.0% overnight against the yen but otherwise is unchanged against the loonie, Aussie dollar, and sterling, up 0.1% relative to the euro and Swiss franc, and 0.2% firmer against the kiwi. The Democratic Party cabinet of Prime Minister Hatoyama took responsibility for breaking a promise to move a U.S. base off Okinawa […] More
