| FOREX: Ringgit Opens Higher Versus US Dollar
KUALA LUMPUR, Feb 7 (Bernama) -- The ringgit continued its upward momentum to open higher against the U.S. dollar following positive economic fundamentals, dealers said. Yesterday, the local currency rose to a nine-year high against the greenback, its strongest since early 1998, amid brisk demand from foreign players ahead of the Group of Seven meeting in Germany this week. The ringgit was firm at the closing yesterday, passing its resistance level of RM3.50 per dollar to hit 3.4955/4980 compared with Monday's close of 3.5000/5005. At 9 am today, the ringgit was traded higher at 3.4920/4950. However, it slipped down against the Singapore dollar at 2.2795/2825 from 2.2772/2803 yesterday. The local unit eased against the Japanese yen at 2.9049/9081 from 2.9013/9041 previously. Dealers said the yen was holding support on caution that the G7 finance ministers would express the need for a higher yen when they meet later this week.
Paulson: Yen's decline is not a concern
WASHINGTON (AFX) - Treasury Secretary Henry Paulson said Tuesday he was not concerned about the lows being set by the Japanese currency against the U.S. dollar because those values are being set in open markets. Paulson was pressed on the issue by Rep. Sander Levin, D-Mich., during a hearing of the House Ways and Means Committee. Levin questioned why the Bush administration was not doing more to encourage the Japanese government to halt the slide in the yen against the dollar. American automakers believe that decline has given their Japanese competitors a tremendous price advantage. Levin said European auto companies were complaining about the yen's decline against their currencies. He suggested that Paulson should join forces with European finance ministers to lobby Japanese officials on the issue when the countries meet this weekend for the Group of Seven finance ministers meeting in Essen, Germany.
G7: Markets have to take Japan rebound onboard
ESSEN, Germany: The G7 economic powers urged China yesterday to loosen state control of its exchange rate and addressed a slide in the yen by urging financial markets to take account of Japan's strengthening economy.
In a statement, the Group of Seven said the US economy was solid and the euro zone rebounding broadly, adding: “Japan's recovery is on track and is expected to continue.
“We are confident that the implications of these developments will be recognised by market participants and will be incorporated in their assessments of risks," the statement issued after a two-day meeting here, said.
That looked like an attempt to convince currency markets of the need for caution on carry trades where investors borrow massively in low-yield currencies such as the yen to invest elsewhere for bigger returns, something that is compounding recent yen weakness.
IDEX Online Research: India’s Diamond Demand to be Robust, Other ...
Regional currency appreciation among Asia-Pacific countries could boost household purchasing power and consumption in 2007. This would allow domestic demand to become an increasingly important driver of economic growth in the region. Further, the interest rate cycle appears to be nearing its peak across most of the Asia Pacific region. .
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