| Forex Funds for Bulls and Bears
In recent years, the weak dollar has helped boost the appeal of foreign stocks and bond funds, as the returns generated by these securities look even better when converted into dollars and cents. But there's also growing interest in a relatively new investment category: funds that invest directly in foreign currencies. Currency funds can provide investors with exposure to international markets without the risk of the individual companies that issue stocks and bonds -- which could be particularly appealing now that foreign stock and bond funds have had such a strong run. They also can be used to hedge specific holdings that are particularly exposed to currency shifts. The first few offerings in this category were open-end mutual funds, but over the past year or so, a number of exchange-traded funds that track currencies have been launched, providing some low-cost options for investors who are active traders.
Venezuela Issues $5 Billion in Bonds, Investment Rating Improves
Caracas, February 9, 2007 (Venezuelanalysis.com) Ricardo Sanguino, head of the Venezuelan National Assemblys finance commission, announced Wednesday that the government planned to issue US$5 billion (3.85 billion) in bonds, as part of a drive to curb a growing rise in the inflation rate. Sanguino said that Venezuelas state-owned oil company, PDVSA, would sell US$3.5 billion (2.7 billion) in bonds, and the Ministry of Finance would issue another US$1.5 billion (1.16 billion) in joint "Bonds of the South" with Argentina, according to the AP. Although dates for the sale of the bonds were not given, Sanguino said the bonds would most probably be issued in the local currency, Bolivars, at the official US dollar exchange rate of 2,150 bolivars per dollar. In November last year Venezuela and Argentina successfully sold their first US$1 billion (770 million) worth of Bonds of the South.
Beware credit card rip off
Credit cardholders are being warned to beware of sharp practice on the part of some foreign retailers who charge high commissions and poor exchange rates to unsuspecting customers while shopping abroad. Credit card companies report an upsurge in complaints about the use of ‘dynmaic currency conversion,' whereby a credit cardholder finds that transactions carried out abroad have been converted into their home currency without their consent at the point of purchase, rather being charged in the local currency. This results in two foreign exchange conversions, often involving high commissions and poor exchange rates, which the cardholder is unaware of until they receive their credit card statement some time later. This is how it works. Say you purchase a handbag in Italy for €100.
Asian currencies mixed against dollar
HONG KONG, Feb 11 (AFP): Major Asian currencies were mixed against the US dollar last week, with the yen sliding ahead of a key meeting of Group of Seven finance chiefs, but the Australian dollar gaining ground.
JAPANESE YEN: The yen is set to remain under pressure from the dollar after losing ground amid speculation that Group of Seven (G7) finance chiefs would fail to issue a united call for a stronger Japanese currency, dealers said.
The Japanese currency stood at 121.32 to the dollar late Friday, down from 120.76 a week ago ahead of the G7 meeting in Germany, where ministers decided as expected not to single out the weak yen as a threat to global growth.
AUSTRALIAN DOLLAR: The Australian currency is likely to struggle against the greenback this week amid concerns that lower-than-expected inflation figures will see the Reserve Bank take a softer stance on interest rates, dealers said.
CORRECTED: ICI year profit up 8 pct
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