Foreign Exchange Insights and Next Week
Seeing is Believing
March 28, 2013
Speculation about moving to a one-to-one dollar per euro exchange rate has again surfaced. Ezone difficulties seem much more formidable than America’s problems, and they are complicated by the institution of a common currency that lacked proper political legitimacy at its inception and still does. The Economist has summed up the present state of European […] More
Central Bank Watch
National Bank of Romania Interest Stays Unchanged as Expected
March 28, 2013
Romania’s benchmark interest rate has been at 5.25% since four 25-basis point cuts spaced tightly between November 2011 and March 2012. Officials would like to ease further but can’t because of above-target CPI inflation. The target is 1.5 – 3.5%, whereas consumer prices rose by 5.65% in the twelve months to February. Officials are counting […] More
Central Bank Watch
Czech National Bank Rate Left at 0.05%
March 28, 2013
From a peak of 3.75% prior to August 2008, the two-week repo rate was slashed to 2.25% by end-2008 and 1.0% by end-2009. A single 25-basis point cut was made to 0.75% in May 2010, and no other change occurred thereafter until cuts of 25 bps last June, another 25 bps last September, and one […] More
Central Bank Watch
Central Bank of the Republic of China (Taiwan): Policy Left Unchanged
March 28, 2013
Monetary policy is reviewed on a quarterly basis in Taiwan. The benchmark interest rate is the discount rate. It has been at 1.875% since a 12.5-basis point hike in June 2011, which culminated a series of five consecutive equal-sized increases that was begun in June 2010. Earlier, the discount rate was slashed from 3.625% prior […] More
New Overnight Developments Abroad - Daily Update
Weaker Japanese and Chinese Share Prices
March 28, 2013
Equities slumped 3.3% in China on fear of more property market curbs. Weakness was concentrated in financials. The decline occurred in spite of data showing a strong 17.2% on-year advance in Chinese corporate earnings. The Japanese Nikkei fell 1.3% on the next to last day before the end of the fiscal year. Bank of Japan […] More
