Forex News and Rumors – Afternoon Update

Yen Rises on Speculation of Decreased Demand for Carry Trades

With global equity markets floundering, the yen posted gains against the dollar and the euro today as currency traders bet that investors will continue to unwind carry trades and pay back the yen-based loans acquired to fund the carry trades. More

Loonie Falls on Weakening Commodity Prices

The Canadian dollar fell again today as weaker demand for oil and other commodities pushed down the loonie. Meanwhile, Bank of Canada Governor Mark Carney hinted at further interest rate cuts. More

Pound Gains on Dollar

Minutes of the last Bank of England meeting suggest that the Bank considered interest rate cuts even greater than the 150 basis point cut actually implemented earlier this month. The minutes show that Governor Mervyn King is willing to cut rates below the current 3 percent rate if necessary to fight the economic slowdown griping the economy. More

Russia Rapidly Depleting Foreign Currency Reserves to Prop Up Ruble

The Russian Central Bank is burning through the country’s foreign currency reserves – third only to China and Japan – in a bid to prop up the ruble as falling oil prices are reducing revenue to the point that investors are selling Russian-based assets in favor of other investment alternatives. More

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