Now is the crisis time...should we buy now?
any suggestion?
Below is the reteurs news today...
NEW YORK, Aug 10 (Reuters) - The yen slipped against both
the dollar and the euro after the U.S. Federal Reserve injected
cash into the banking system three times on Friday, easing U.S.
stock market losses and calming anxious financial markets.
Global central banks, including the European Central Bank
and the Bank of Japan, added more than $300 billion of extra
cash to the banking system over the last 48 hours to stabilize
credit markets.
"Central banks like the Fed and ECB are adding liquidity,
and that has done a lot to calm the markets," said Rafael
Martorell, chief dealer at BNP Paribas in New York.
That helped U.S. stocks recover from an early plunge,
sending currency traders rushing to sell their newly acquired
yen.
Recently, the Japanese currency has slipped when equity
markets rose because investors could borrow in low-yielding yen
to finance purchases of other risky assets. When stocks slid,
the yen firmed as investors unwound those carry trades and
bought back yen.
In late New York trade, the dollar was up 0.3 percent at
118.48 yen <JPY=>, more than 1 yen above a low touched earlier
in the session. The greenback also rose 0.2 percent against the
Swiss franc to 1.1960 francs <CHF=>.
The euro was up 0.2 percent on the day against the dollar
at $1.3697 <EUR=>, still well below a record high of around
$1.3850 hit last month. It was up 0.45 percent against the yen
at 162.30 yen <EURJPY=>.
INTERNATIONAL CREDIT WORRIES PERVADE TRADING
A crisis that began with losses in the U.S. subprime
mortgage market became a worldwide flight from risk this week.
Equities tumbled, government bonds rallied and expectations of
global central bank rate hikes were scaled back.
On Friday, the Fed injected $38 billion of funds into the
banking system in three operations and said it was ready to
supply funds as needed to financial markets -- the first such
reassurance from the central bank since the terror attacks of
Sept. 11, 2001.
Despite the Fed's actions, two of the three major U.S.
equity indexes finished the day down, with the Dow Jones
industrial average <.DJI> falling 0.23 percent, recovering
somewhat from midday lows more than 2 percent below the open.
Despite continued equity weakness, the yen didn't regain
its footing.
"Currency market participants are squaring their
positions," said Samarjit Shankar, director of global strategy
at Bank of New York Mellon. "You are seeing some decoupling
between the equity market positioning going into the weekend."
Despite the day's volatile shifts, Shankar expected more
gains in the yen next week.
"As long as equities remain under pressure, we expect to
see the yen getting stronger. It is because of more risk
aversion and concerns about liquidity," he added.
Also on Friday, the federal funds rate rose as high as 6
percent -- well above the Fed's target of 5.25 percent --
prompting the central bank to inject temporary reserves into
the banking system.
Overnight interest rates in the euro zone and the United
States spiked this week as financial institutions scrambled for
cash due to the credit market turmoil.
The credit market problems prompted the market to price in
a quarter-percentage-point Fed rate cut by September.
Traders are also betting on a less than 50/50 chance that
the ECB will raise interest rates next month, down from a 70
percent chance at the beginning of this week. They put the
chance that the Bank of Japan will tighten monetary policy this
month at one in three, compared with 75 percent previously.
any suggestion?
Below is the reteurs news today...
NEW YORK, Aug 10 (Reuters) - The yen slipped against both
the dollar and the euro after the U.S. Federal Reserve injected
cash into the banking system three times on Friday, easing U.S.
stock market losses and calming anxious financial markets.
Global central banks, including the European Central Bank
and the Bank of Japan, added more than $300 billion of extra
cash to the banking system over the last 48 hours to stabilize
credit markets.
"Central banks like the Fed and ECB are adding liquidity,
and that has done a lot to calm the markets," said Rafael
Martorell, chief dealer at BNP Paribas in New York.
That helped U.S. stocks recover from an early plunge,
sending currency traders rushing to sell their newly acquired
yen.
Recently, the Japanese currency has slipped when equity
markets rose because investors could borrow in low-yielding yen
to finance purchases of other risky assets. When stocks slid,
the yen firmed as investors unwound those carry trades and
bought back yen.
In late New York trade, the dollar was up 0.3 percent at
118.48 yen <JPY=>, more than 1 yen above a low touched earlier
in the session. The greenback also rose 0.2 percent against the
Swiss franc to 1.1960 francs <CHF=>.
The euro was up 0.2 percent on the day against the dollar
at $1.3697 <EUR=>, still well below a record high of around
$1.3850 hit last month. It was up 0.45 percent against the yen
at 162.30 yen <EURJPY=>.
INTERNATIONAL CREDIT WORRIES PERVADE TRADING
A crisis that began with losses in the U.S. subprime
mortgage market became a worldwide flight from risk this week.
Equities tumbled, government bonds rallied and expectations of
global central bank rate hikes were scaled back.
On Friday, the Fed injected $38 billion of funds into the
banking system in three operations and said it was ready to
supply funds as needed to financial markets -- the first such
reassurance from the central bank since the terror attacks of
Sept. 11, 2001.
Despite the Fed's actions, two of the three major U.S.
equity indexes finished the day down, with the Dow Jones
industrial average <.DJI> falling 0.23 percent, recovering
somewhat from midday lows more than 2 percent below the open.
Despite continued equity weakness, the yen didn't regain
its footing.
"Currency market participants are squaring their
positions," said Samarjit Shankar, director of global strategy
at Bank of New York Mellon. "You are seeing some decoupling
between the equity market positioning going into the weekend."
Despite the day's volatile shifts, Shankar expected more
gains in the yen next week.
"As long as equities remain under pressure, we expect to
see the yen getting stronger. It is because of more risk
aversion and concerns about liquidity," he added.
Also on Friday, the federal funds rate rose as high as 6
percent -- well above the Fed's target of 5.25 percent --
prompting the central bank to inject temporary reserves into
the banking system.
Overnight interest rates in the euro zone and the United
States spiked this week as financial institutions scrambled for
cash due to the credit market turmoil.
The credit market problems prompted the market to price in
a quarter-percentage-point Fed rate cut by September.
Traders are also betting on a less than 50/50 chance that
the ECB will raise interest rates next month, down from a 70
percent chance at the beginning of this week. They put the
chance that the Bank of Japan will tighten monetary policy this
month at one in three, compared with 75 percent previously.