More profits for yen and swiss franc for fear of recession.
11:54 - 09/08/11
EFEDJ WORLD FOREX: More profits for yen and swiss franc for fear of recession.
09/08/2011 3:17 DJLL001056N/DJSW N / EDJ N / LL N / CCS / R / R SO / FE R / JA / /
SINGAPORE (Dow Jones) - The yen and Swiss franc traded higher on
Tuesday in Asia due to fears of global recession has
prompted investors to flee to assets considered
Asian stock markets plunged sharply amid
flight to safe haven assets, driving down the currencies with higher
profitability as the South Korean won and Australian dollar, which
fell below $ 1.00 for the first time since March 21.
The euro rose on speculation that the Committee
Federal Open Market of the United States could launch
monetary easing measures after its monthly meeting
Tuesday. The relaxation of the Fed would support the euro,
because it would show the monetary policy
is relatively harder than the Bank conducted
The Australian dollar also recovered at the last
hours of trading in Asia for the same speculation
Fed, and was quoted at U.S. $ 1.0211 from the intraday low of U.S. $ 0.9950.
Kenneth Rogoff, a Harvard professor and former chief economist
International Monetary Fund said Tuesday in an interview with
Bloomberg News is likely that the Federal Reserve to launch an
third round of asset purchases on a large scale, and predicted that the bank
central "is going to move more decisively" following the
market turmoil that followed the lowering of the
sovereign debt rating of the United States on Friday
part of Standard & Poor s.
Some traders believe that sales on Tuesday were exaggerated, and
provide a technical rebound in terms of message
send this Tuesday the Federal Reserve.
"There is a sense of panic in the market, which may be
triggering more sales than necessary, "said Yutaka
Yoshii, Mito Securities.
Fed is expected to leave unchanged its interest rates.
Investors were aware of a new intervention
Japanese authorities, as the dollar fell as 77.08
yen, so the authorities could have started another round
strong sales of the yen as happened last Thursday.
The dollar traded at 77.35 yen below 77.77 yen
late Monday in New York. The euro traded at 110.34
yen from 110.26 yen in New York and U.S. $ 1.4269 from U.S. $ 1.4180.
-By Martin Vaughan, Dow Jones Newswires, +65 6415 4033;
martin.vaughan @ dowjones.com
(END) Dow Jones Newswires
August 09, 2011 3:17 ET (07:17 GMT