World Currency Trade Rises 17% to $2.7 Trillion a Day


Global currency trading rose to $2.7 trillion a day between April and October, the first growth since the six months to April 2008, the Reserve Bank of Australia said, citing data from five markets.

Transactions increased by 17 percent from the previous six months, the RBA said in a report based on figures from Australia, the U.S., U.K., Canada and Singapore. These markets account for more than 60 percent of world currency trading, the RBA said.
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French Budget Deficit Widens In January


The French budget balance showed a deficit of EUR 9.2 billion in January compared to a shortfall of EUR 8.1 billion seen in the same period of last year, the Budget Ministry revealed Thursday.

Expenses increased to EUR 27.3 billion in January from EUR 22.2 billion in the previous year. At the same time, the general budget revenues totaled EUR 20 billion, up from EUR 17.9 billion in January 2009.
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Yen Reverts Losing Trend on Domestic Speculations


The yen started this Thursday’s session in Asia gaining versus currencies regionally and globally, on speculations that local investors are repatriating capital before the Japanese fiscal year ends in the following weeks.

Speculations that Japanese exporters are buying the national currency before the fiscal year end in Japan allowed the yen to gain versus virtually all of the 16 main traded currencies in the beginning of the Asian session this Thursday, after general optimism from earlier this week in the Asian-Pacific axis declined considerably, allowing assets in Japan to gain attractiveness. One of the biggest losers versus the yen during the past hours was the Aussie dollar, as a report in the nation indicated that less jobs than expected were added by employers n Australia, raising doubts regarding the economic recovery in the South Pacific.
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NZ Dollar Down on Rates Dovish Comments


After gaining for two consecutive days versus important currencies like the euro and the U.S. dollar, the kiwi currency didn’t manage to sustain its trend after central bankers in the country affirmed that lack of economic improvements in the South Pacific nation will delay interest rate hikes.
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U.S. Dollar Still Rules, but Debt Level a Risk - S&P


The U.S. dollar is still the most important world currency, Standard & Poor's said on Thursday, but added that rising levels of U.S. debt and dependence on foreigners to finance much of pose risks to the currency's primacy.

Without a credible plan to rein in fiscal spending, the agency said external creditors could reduce dollar holdings, which could put pressure on the United States' 'AAA' credit rating, which keeps government borrowing costs low.
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Euro Low at $1.3627 in European Morning Trade


The euro is lower against the dollar in European morning trade but a successful bond sale in Portugal has calmed worries that some countries' budgets are out of control.
The 16-nation euro traded at $1.3627 Thursday, down from $1.3652 late Wednesday in New York.
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The yen and dollar rose versus their major counterparts after Chinese reports on inflation, factories and loans fueled concern the government will act to damp growth, boosting demand for the lowest-yielding currencies.

Japan’s currency strengthened from a two-week low against the euro after Chinese inflation reached a 16-month high and on speculation exporters brought funds home before the fiscal year ends this month. New Zealand’s dollar fell for a second day versus the greenback as the central bank signaled a slower exit from stimulus measures. South Korea’s won slid on a media report the nation’s largest power company purchased dollars.
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Currencies Market: Canadian Dollar Keeps Uptrend on Growth


The Canadian dollar had an amazing eighth day of consecutive gains versus its southern counterpart as currencies tied to growth profited from another session of optimism in commodities and equities markets, allowing the loonie to remain bullish.
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Currencies Market: Asian Economic Affects Yen’s Price


The Japanese yen had a negative performance this Tuesday versus most of the Asian and South Pacific key-currencies as evidences suggest that commodity producer countries in the region, as well as emerging markets, are likely to outperform the Japanese economy this year, affecting the yen as well.
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NZ dollar at two-week highs ahead of rate decision


The New Zealand dollar rose to a two-week high against the U.S. dollar on Wednesday, boosted by its gains against the Australian dollar following a softening demand for mortgages in the neighboring country.

But traders were cautious ahead of the central bank rate review limiting gains.
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