TOKYO (Reuters) – The dollar’s sharp slide to 13-year lows against the yen and fresh all-time lows versus the euro on Monday is stoking jitters about the possibility of joint central bank intervention to prop up the dollar.”The speed of the slide in the dollar/yen is so rapid that U.S. action alone can no longer stop the dollar’s downward trend,” said Koichi Ogawa, chief portfolio manager at Daiwa SB Investment.
“The time is ripe for coordinated intervention by U.S., European and Japanese authorities.”
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Tags: Bear Stearns, Daiwa SB Investment, Dollar, ECB, EZB, intervention, Japanese, TOKYO, U.S.
BRUSSELS: President Nicolas Sarkozy of France and Chancellor Angela Merkel of Germany will end months of wrangling Thursday by presenting a joint plan to strengthen Europe’s ties with countries on its southern borders. Continue reading »
Tags: Algeria, Angela Merkel, Egypt, EU, EZB, Israel, Jordan, Lebanon, Mediterranean Union, Morocco, Nicolas Sarkozy, Syria, Tunisia, Turkey
World central banks unite to ease credit strain
WASHINGTON (Reuters) – The U.S. Federal Reserve and four other central banks on Tuesday teamed up to get hundreds of billions of dollars in fresh funds to cash-starved credit markets, allowing financial firms to use securities backed by home mortgages as collateral for central bank loans.
Stocks surged, bonds fell and the long-suffering U.S. dollar soared in reaction to the moves, a sign financial markets saw the plan as a step in the right direction to ease a crisis that has threatened world economic growth. The Dow Jones industrials closed nearly 3.6 percent higher.
In the latest effort to ease a credit contraction that has disrupted global finance, the Fed, Bank of Canada, Bank of England, European Central Bank and Swiss National Bank announced a series of aggressive measures to boost liquidity. It was the second time in three months that central banks from around the globe had launched coordinated efforts.
Wall Street economists were quick to call the new lending facility a step in the right direction, but what’s most needed is time for the de-leveraging of billions of dollars in loans globally. Continue reading »
Tags: Bank of Canada, Credit Suisse, David Rosenberg, Dollar, Dow Jones, ECB, ecomomic, Economy, EZB, Fed, Goldman Sachs, IMF, Jan Hatzius, Kathleen Stephansen, Merrill Lynch, Mortgages, Rate Cut, Rating, Recession