How are currencies proceeding after the G20

Inviato il 22 November 2010 da Rod

The dollar had its first weekly gain after Ben Bernanke, chairman of the U.S. Federal Reserve, has opened the way for further quantitative easing. The rally of the dollar has come down to the last meeting of G20 leaders in Seoul, where there have been little progress in defusing the tensions international currency. Instead, events outside the sphere of influence of those who gathered in Seoul see a return to risk aversion.
After hitting its lowest level, the dollar has risen by 1, 2 percent against the yen, at a value of 82.15. The euro has had the worst performance among the major currencies, after the re-emergence of concerns over the debt of the euro-zone countries. Ireland was the last country to create such fears. Meanwhile, rumors of an imminent bail-out Irish have brought down the euro against the dollar of 1.6 percent.
The turmoil of sovereign debt in Ireland and Portugal has raised concerns that the contagion could drag other countries in the euro zone in trouble and that delaying the ECB attempts to normalize interest rates in the region it could be even more serious.
The crisis in the euro zone is set to become even worse if nothing is done. The ECB policy makers are once again called upon to reverse course from implementing exit strategies. The fact remains vulnerable euro against the currencies.
In addition, even speculation that China has stopped its efforts related to monetary tightening after the stronger expected inflation data has prompted fears of weakening demand. The possibility of increased rates of Chinese debt woes in Europe and continues to have a fairly marked effect on the currencies. Meanwhile, the disclosure of information about the willingness of the Chinese People’s Bank of China to raise the reference rate for the renminbi.
The pound has been rather quite in flux, as investors remained uncertain about the next move by the Bank of England.