Deeper Analysis
Swiss Franc Returns to Glory
July 26, 2011
Currencies that perennially appreciated were known as “hard currencies” in the early days of floating exchange rates, and the Swiss franc was the king of the hard currencies. No other currency could match it stride for stride, and Swiss officials at times implemented extraordinary measures to contain that power, even for a while imposing negative […] More
Central Bank Watch
Hungarian Central Bank Leaves 6.0% Key Rate and Releases Dovish Statement
July 26, 2011
The two-week Hungarian deposit rate has been at 6.0% since a 25-basis point hike in mid-January, which had been the third consecutive monthly hike of that same size. Policy has been paused for the past half year, and a dovish statement from the Magyar Nemzeti Bank after this month’s meeting reiterates the views that GDP […] More
Central Bank Watch
Reserve Bank of India Tightens By More Than Expected
July 26, 2011
India’s repo and reverse repo rates were increased by 50 basis points each to 8.0% and 7.0%. The repo rate has been raised five times so far in 2011 by a combined 175 basis points. Such follows six increase during 2010 totaling 250 basis points. The cash reserve requirement ratio was kept steady at 6%. […] More
New Overnight Developments Abroad - Daily Update
Investors Bracing for Increasingly Likely U.S. Credit Downgrade
July 26, 2011
Many people, discouraged by the political comments Monday night of Obama and Boehner, now believe the U.S. AAA credit rating will be cut even if a post-August 2 default is averted. Gold hit a record high of $1624.30 but is unchanged on balance at $1613.80 per ounce. Oil prices firmed 0.5% to $99.70 per barrel. […] More
