Refishowcase Business & Finance

The dollar traded near the strongest position in over 7 months following the signal the euro countries with the largest economy was gaining momentum from the high demand for assets.

The greenback is expected to continue strengthening this week ahead of the U.S. manufacturing sector report and household purchases. Both predicted experiencing expansion. Euro also potentially weaken the yen over the issue of Greece’s budget deficit widened more and more expected.

“The data coming out this week confirms that the U.S. economy improves. Improving economic fundamentals will support the U.S. dollar,” said Koji Takeuchi, senior economist Mizuho Research Institute Ltd. of Tokyo, today.

The dollar traded at U.S. $ 1.3864 per euro at 8:06 am in Tokyo, rose from U.S. $ 1.3863 in New York last week. The dollar was at 90.12 yen from 90.27 in New York. Euro survive the weakening yen 124.96 yen from 125.13, after a touching 124.43, the weakest level since 28 April.

Manufacturing index from the Institute for Supply Management is at 55.5 in January. Figures above 50 indicate the existence of expansion. This recovery continued to strengthen the signal in the U.S.. Likewise, the increase in household purchases of 0.3%.

Last week, the U.S. dollar strengthened encouraged by the report the Department of Commerce regarding the increase in GDP by 5.7% per year during the October to December. The increase is the fastest in 6 years.

Asian currencies rose, led by the South Korean won and Malaysian ringgit prompted speculation the Federal Reserve will keep interest rates low to stimulate demand for high-yield assets in emerging markets.

The strengthening of the won and the ringgit occur every day throughout the week. The appreciation continued as the impact of the Fed’s decision Open Market Committee last month that was launched yesterday, to extend the stimulus package to sustain economic recovery. Export performance of Taiwan and Malaysia is estimated to rise for two months.

“Expectations that the U.S. appears to raise rates, but invites a lot of arguments, as they are not solid recovery. Action to sell U.S. dollars occurs in response to the news and would encourage regional currencies,” said Zaki Mokhtar, head of foreign exchange spot trading on the RHB Bank Bhd Kuala Lumpur.

Won rose 0.3% to 1133 at 12:30 pm in Seoul, which had touched the highest level in 15 months of 1129.42.

Malaysian ringgit reached the highest position in 6 weeks at 3.3620, and rose 0.2% continues to 3.3710 per U.S. dollar. Philippine peso also gained 0.3% to 45.895 Taiwan dollars and increased 0.1% to NT $ 31,833.

John Lipsky senior International Monetary Fund (IMF) said the institution is likely to raise 2010 global growth estimate later this month, from 3.1% position.

The median estimate of economists surveyed showed exports to Taiwan in December jumped 45% from the previous year and Malaysia rose 3% for 3 months.

South Korean Won continues to strengthen for the fifth day, the longest movement in almost 4 months, along with the improvement in export performance which triggered the entry of foreign investors borong local shares.

Samsung Electronics Co., the largest semiconductor manufacturers in Asia, as well as flat screens and mobile phones, recording Fourth quarter earnings of about 3.7 trillion won (U.S. $ 3.3 billion). In fact, the same period last year, the company still suffered losses.

“South Korean Won support payments from the state improved. Despite the strengthening occurred in March 2009, but we believe it is fundamentally the won is still undervalued,” said Leong Wai Ho, an economist at Barclays Plc in Singapore.

The Bank of Korea said the interest rate policy will support economic growth even as the central bank should maintain the imbalance caused by low interest rates. According to the 14 economists surveyed, Governor Lee Seong Tae believed to hold interest rates at 7 days 7% tomorrow.

Philippine peso rose to the highest position in 16 months at 45.72 per dollar two days ago, due to speculation the U.S. dollar bond sale by the government worth U.S. $ 1.5 billion. This action sparked buying of the local currency.

“We go back to see the strengthening of the peso,” said Antonio Espedido, treasurer at China Banking Corp. in Manila.

Indonesia plans to sell bonds worth U.S. $ 4 billion, and Vietnam is looking for funds amounting to U.S. $ 1 billion.

Rupiah strengthened 0.1% to 9230 per dollar today, after yesterday rose to 1.4%. Thai Baht is also strong 0.1% to 33.14 yuan and China are not much changed at 6.8277

Asian currencies weaken, led by the South Korean won and Philippine peso against the dollar on concern China will restrict kredi to hold regional export demand.

The MSCI Asia-Pacific Index dropped to the lowest level during 2010 after Reuters reported several banks in China to provide cash to increase reserves. Pressure on the won continues triggered by a report that GDP fell to 0.2% in the quarter IV of 3.2% the previous period.

“Asian Currency weakens influenced China talks about the possibility of doing the tightening and asked a number of banks to raise reserve ratios again. This led to indiscriminate selling Asian currencies, the yen strengthened on the other hand,” said Joanna Tan, a regional economist Forecast Singapore Pte.

Won weakened 1.3% to 1165.50 per U.S. dollar at 2:18 pm in Seoul and had time to reach 1166.50, its lowest level this year. Peso weakened 0.5% to 46.47 and the Malaysian ringgit to be depressed 0.6% 3.4205. Rupiah also down 0.4% to 9380.

China’s central bank earlier this month the bank raised compulsory registration deposits 0.25% to 16% to keep credit growth and prevent asset bubbles in shares and property.

Reports of credit tightening reduces the demand for shares in China market. This causes the Shanghai Composite Index fell 2.3%. While the external market is also down.

On the other hand, the yen and U.S. dollar gained on the euro. The yen strengthened to 126.44 per euro in Tokyo, from 127.75 in New York yesterday. U.S. dollar increased to USS1, 4092 per euro.

Taiwan dollar strengthened encouraged by government reports of a record increase in manufacturing production. The data that was launched this month showed Taiwan exports rise in line with the decline in the unemployment rate. Achievement was raised currencies to its highest level since September 2008.

“Taiwan dollar appreciation as a result of moving the entry of hot money into Asia, including Taiwan. The central bank is always in the market to overcome the high volatility,” said Tarsicio Tong, forex dealers Union Bank of Taiwan in Taipei.

South Korea’s economic growth slowed during the quarter IV exceeded the median estimate of the economy. Kim Myung-Kee, the Bank of Korea officials, said the slowdown that occurred in October through December is only temporary adjustment does not affect the national growth momentum.

“Global economic recovery is still in process and should be recognized, not as smoothly and as quickly as expected. So the market is still moving volatile during the quarter I,” said Lindawati Susanto, head of FX Trade PT Bank Resona Perdania in Jakarta.

Singapore dollar weakened 0.4% to S $ 1.4041 per U.S. dollar, Thai baht depressed 0.2% to 33.02. China Yuan unchanged at 6.8269

: The yen weakened the currency 16 main partner countries associated with the prospect of Federal Reserve Governor Ben S. Bernanke back to his post for the second period and continued economic recovery in the country in the world’s largest.

The yen weakened ATS euro for the first time in 8 days after President Barack Obama received assurances from the Senate office about the survival Bernanke. U.S. dollar weakened against a number of currencies with higher yields following a report by economists estimate that home sales in the U.S. fell in December.

“Slowly kondiri improved during Bernanke served. So far, the Senate gave support. It has the potential to raise the sentiment, ’said Robert Rennie, head of currency research Westpac Banking Corp. Sydney.

The yen weakened to 127.31 per euro at 9:11 pm in Tokyo, from 126.98 in New York on January 22.

The median estimate of economists say home sales in the U.S. fell to 6 million per year in December, from 6.54 million in November. National Association of Realtors will publish the data today.

According to the 91 economists surveyed, the Fed would keep overnight interest rates between 0% and 0.25% on January 27.

The countries in Asia are urged to consider the use of a common currency as a regional-scale accelerated economic integration in the region.

This idea is similar to what the European Union when they enforce the euro in mid-2002. The goal is the continent’s economy is more solid yellow and supports the global post-crisis recovery process. This idea was conveyed former Minister of Finance and the Japan International Cooperation Eisuke Sakakibara at a forum in Singapore yesterday.

According to him, the implementation of a common currency may have no more hot issues discussed, but it’s possible to rethink the idea. Only, he said, the talks will take several decades due to common perceptions among countries in Asia.

“But it might be time to think about how Asia’s economic integration is gradually approaching the European level,” Sakakibara said in Singapore yesterday.

According to Sakakibara, this idea triggered a global economic slowdown due to the worst financial crisis since more than 70 years ago it was.

Moreover, he said, many analysts who said that Asia will lead the growth in the recovery period. In addition, countries are key to Asia’s growth was also considered to reduce trade barriers and offer business network procedures better. One example, he said, is the agreement between the countries in Southeast Asia (ASEAN) with China which began January 1 lalu.Kerja as it makes an open market for 1.7 billion people in the region.

Sakakibara is currently a professor at a university in Tokyo also stated that the use of policy references a common currency that will use its own version, different from the concept of the International Monetary Fund (IMF). Given the scale of potential economic growth in Asia, Sakikabara suggested that such a reserve fund established with funds to strengthen the event of a crisis. This proposal is based on the trends that occurred recently, where the governments of the countries in Asia as a backup compact closed devisanya ratarata about $ 5 billion.

“Imagine if we use only 5% of the total funds that will be collected at least approximately USD250 billion, enough to form a common fund,” said Sakakibara. According to him, now it’s time to start and trying to coordinate exchange rate policy and monetary policy uniformity. However, the plan will not be easily assessed since there is a possibility does not like the United States (U.S.) for fear of discouraging that in fact the influence of the IMF diboncengi Western interests. Other countries also are designing the formation of currency is the Middle East region.

Rich countries that the oil was even further by the fact the union agreed to the establishment of Arab currencies in December. Countries that joined in the deal include Bahrain, Kuwait, Qatar, and these same Arab Saudi.Kerja incorporated in the Country Cooperation of the Gulf (GCC) and will form a special central bank and the Gulf currencies immediately issue a special