Indian rupee inched up to the strongest level in over a week as the Federal Reserve Chairman Ben Bernanke announced that the U.S. economy requires to prolong asset purchases, fueling the outlook of the capital flow in emerging markets. The Indian currency rallied 0.4% to 59.4250 against the U.S. Dollar.
The British currency rose for a second straight day versus the greenback after the Fed's Bernanke stated that U.S. will maintain accommodation. The Sterling climbed 0.7% to $1.5112 as of 7:40 a.m. in London after advancing 1% on Wednesday; moreover, it slipped to $1.4814 on Tuesday, the weakest since June 23, 2010. The Pound traded at 86.56 pence per Euro.
Australian currency advanced to the highest level in last two weeks after the Fed's Bernanke indicated that the monetary stimulus programme will remain unchanged in the nearest future. The Aussie rose 1.1% to 92.75 U.S. cents at 4:42 p.m. Sydney time from Wednesday, after earlier reaching 93.06. The Kiwi climbed 1.3% to 79.40 U.S. cents, after touching 79.69, while it
The South Korean Won advanced the most in over 18 months and government bonds surged as the Federal Reserve Chairman Ben Bernanke announced that the U.S. economy still needs monetary stimulus, and South Korea maintained interest rates flat. The South Korea's currency jumped 1.2% to 1,122.39 versus the U.S. Dollar, the largest rise since December 2011.
The Canadian currency advanced for the third day as the Federal Reserve meeting minutes indicated division among officials about the time frame for ending bond purchase programme. The Canada's Dollar inched up 0.6% to C$1.0465 versus the U.S. Dollar, adding to signs the loonie has jumped 1% in the last three months versus nine developed nations currencies.
The Fed's Chairman Bernanke is willing to continue with Quantitative Easing programme, even though the minutes of officials' June meeting indicated that they talked about winding down stimulus. The minutes from last meeting showed that approximately half of the FOMC participants wanted to start tapering by the end of this year.
The U.S. Dollar retreated against most of its major counterparts as the Federal Reserve Chairman Ben Bernanke announced that inflation and unemployment rates indicate the U.S. economy still needs very accommodative quantitative easing programme. The greenback fell 1.1% to $1.3116 against the Euro and declined 1% to 98.73 versus the Japanese Yen.
The U.S. Dollar depreciated against six main trading partners as yen strengthens. The U.S. Dollar Index declined 0.5% to 84.16, dropping from yesterday's 3-year high. The S&P gauge decreased 0.2% after fluctuation before the release of the Fed's minutes. The S&P commodity gauge rose for a seventh straight day.
WTI crude gained after U.S. crude stocks decreased for a second straight week. Crude for August settlement climbed 1.6% to $105.17 a barrel as of 9:49 a.m. on the New York Stock Exchange, after reached $105.62, the 14-month high. The market is into backwardation, futures for later deliveries are becoming less expensive compared to those with closer expiration.
French industrial output declined less than experts expected in May. It fell 0.4% after a 2.2% gain in April while economists estimated a 0.8% drop. The Eurozone's currency advanced 0.3 % to $1.2817 at 11:29 a.m. in London. The Bank of France reported this week that a factory executive confidence gauge rose to 96 in June, the highest since September
Gold advanced for a third straight day amid speculation previous quarter's plunge is stimulating physical demand, and the greenback declined from a three-year record level. Gold for August settlement advanced 0.8% to $1,255.80 per ounce at 7:46 a.m. on the Comex in New York. Immediate deliveries gained 0.6% to $1,258.46 in London.
The Japanese Yen advanced the most in about a month versus the U.S. Dollar as clues of recovery in Japan's economy curbed prospects that the Japan's central bank will ease policy this year. The Yen strengthened 1.1% to 100.04 against the U.S. Dollar and jumped 0.8% to 128.28 versus the common currency.
Italy's one-year borrowing costs advanced to the highest level in four months at an auction, a day after the Standard & Poor's snapped Italian sovereign credit rating to two notches over junk. The Treasury auctioned one-year bonds worth of 7 billion euros, paying a yield of 1.078%. Italy's sovereign debt was cut from BBB-plus to BBB by S&P on concerns
German government bunds increased as the data indicated consumer prices, estimated by using a harmonized European Union method, inched up 1.9% in June from the previous year, in line with analyst expectations. The yield on the 10-year bond retreated two basis points to 1.63%, decreasing for the third day in a row.
China's imports and exports surprisingly fell in June, adding pressure on its economy. Overseas shipments dropped 3.1% compared to previous year, making it the biggest decline since the global financial crisis, according to General Administration of Customs data. Imports fell 0.7%, while the predictions were for a 6% gain.
The greenback declined versus major currencies, and investors expect further information on the Federal Reserve's time frame for tapering bond purchases. The U.S. Dollar traded at 99.92 versus the Japanese Yen. The 17-nation currency jumped to $1.2803. The ICE Dollar Index retreated from 84.598 to 84.454.
The Global agency Fitch has increased Latvia's credit rating by one degree to BBB+, after Latvian membership in the Euro block was approved. The ECOFIN's announced their decision and gave the green light to Latvia to join the Euro block and become the 18th member of the Eurozone on the January 1 2014, adding to signs the approval was broadly
European shares dropped from their highest level in about a month as data indicated Chinese overseas sales and inbound shipment declined more-than-expected. U.S. Index futures remained steady and Asian stocks jumped. The Stoxx Europe 600 Index decreased 0.3% to 293.66 and the equity benchmark inched up to the highest level since June 10.
German stock prices were virtually unchanged as unexpected fall in China's exports and imports and a rise in Beiersdorf and Henkel offset each other. The DAX Index dropped as much as 0.1% to 8,054.64. The gauge has lost 5.6% of its value since May 22 when Ben Bernanke indicated that the Fed might end its stimulus earlier.
Italian government securities decreased for a second consecutive day as S&P cut the credit rating for the country due to worsening economic outlook. The rating was decreased from BBB+ to BBB. The yield on 10-year government bonds increased 3 basis points to 4.44%. The yield on similar-maturity German bunds decreased 1 basis points to 1.65%.
The Australian currency reached its strongest level in seven days on bets that its retreat has been excessive. The Aussie gained 0.3% to 91.98 U.S. cents at 4:42 p.m. Sydney time from Tuesday, and reached 92.18, the strongest level since July 2. The New Zealand's Dollar added 0.1% to 78.62 U.S. cents, after sliding 0.3% and climbing 0.4%.
European stocks advanced to the 1-month high as investors await the report of the last Fed's meeting, which might indicate how long monetary stimulus will last. The Stoxx Europe 600 jumped 0.3% to 295.45, the highest point since June 10. S&P 500 futures increased as much as 0.1%, while MSCI Asia Pacific Index gained 0.7%
The Loonie climbed for a second straight day on bets that corporate profits will beat expectations and June housing starts topped the forecasts, according to analysts'.The Canadian currency gained 0.3% to C$1.0527 per U.S. Dollar as of 5:03 p.m. Toronto time, while it rose 1% to C$1.3455 per Euro and one Canada's Dollar buys 94.99 U.S. cents.
Gold dropped as Chinese overseas sales declined more-than-forecast in June and as investors expect minutes from the Federal Open Market Committee's meeting previous month on speculation the central bank will start to taper bond purchases. Spot gold retreated 0.6% to 1,244.03 per ounce and the August Bullion contract remained steady at $1,246 per ounce.