| The Bank of New York Takes Top Ranking in Global FX Survey
NEW YORK, March 29 /PRNewswire-FirstCall/ -- The Bank of New York, a global leader in treasury management services, has taken top honors in Global Investor's 2007 Foreign Exchange Survey by winning a total of 17 number one rankings in both weighted and unweighted categories. The Bank ranked number one for Best FX Service Overall in the weighted ranking. The rankings are based on Global Investor's largest ever FX survey, consisting of 705 investment managers polled globally on foreign exchange performance and related services. Jorge Rodriguez, managing director and head of global foreign exchange sales for The Bank of New York's Global Markets Division, said, "Our top ranking in this important global survey highlights the success we have had listening to and servicing our clients. As a result of their input, we have broadened our reach into key strategic markets, and have continued to build- out our leading-edge decision support tools, while making strategic investments in our FX technology." The Bank of New York won seven of ten top rankings in the "Real Money" weighted and unweighted categories, including #1 Best FX Service for all respondents, for North American respondents and for European respondents, and #1 for Most Improved Service over the Last 12 Months in the unweighted category.
The force Fed rand
WE'VE seen a lot of doom and gloom in the views expressed about SA's large current account deficit in the fourth quarter of last year - including from me last week. But the rand continues to defy the prophets of doom. SA's currency has been remarkably strong since the announcement that the deficit on the current account was 7.8% of gross domestic product (GDP) in the fourth quarter of last year. What are the reasons for the currency's remarkable resilience, and what's the outlook? The most obvious reason why the rand strengthened despite bad news locally is that the news was overshadowed by the latest statement from the US Federal Reserve's Federal Open Market Committee (FOMC). A change in the FOMC's phraseology led the markets to conclude that US interest rates might fall sooner rather than later this year.
Australian Dollar Rises to Strongest Since 1996 on Yield Demand
March 20 (Bloomberg) -- The Australian dollar rose above 80 U.S. cents to the strongest in a decade as speculation of higher interest rates fueled optimism the nation's financial assets will offer even better returns. The currency, which has traded above 80 cents just one day since 1996, has advanced as Reserve Bank of Australia officials signaled borrowing costs may need to rise to tame inflation that's running faster than the central bank's target. Australia's dollar also gained as a global stock rally led investors to buy the nation's assets via so-called carry trades. ``The Australian dollar could certainly stay at these relatively high levels,'' said Stephen Halmarick, co-head of economic and market analysis at Citigroup Australia in Sydney. ``International investors find Australia a very attractive place to invest.
Walking the current account tightrope
The focal point of the release of the SA Reserve Bank (SARB) quarterly report for March 2007 was the announcement of the current account deficit for the fourth quarter of 2006. The SARB made a point of preparing the market for a high figure, and market participants, in particular in the currency market, could therefore position themselves accordingly, e.g. by holding short positions in the rand.
Consequently the market was not upset by the SARB's announcement that South Africa's current account deficit had risen to 7,8% of GDP in the fourth quarter. In fact, the reaction in the currency market was a strengthening of the rand from approximately R7,40/$ prior to the announcement to R7,20/$ following the announcement. It therefore appears that the market had discounted an even higher figure, which led to a sigh of relief, or it was simply a case of profit taking - “sell on the rumour, buy on the fact" - as far as the rand was concerned.
Brazil to Sell Dollar-Denominated Bonds Due in 2017 (Update1)
April 3 (Bloomberg) -- Brazil plans to sell dollar- denominated bonds due in 2017 in international markets, the Treasury said in a statement. The Treasury said it will sell the bonds in U.S., European and Asian markets. Brazil will seek to sell as much as $500 million worth of the bonds, with the possibility to increase the size by $25 million for buyers in Asia, said investors who were approached with the terms of the sale. ``When they have these types of deals, they usually have a good idea of what the interest is ahead of time, so there is probably good demand for the bonds,'' said Ricardo Simone, executive director at Sao Paulo-based Banco Sofisa SA. During November's sale, Brazil sold $1.5 billion of the 6 percent bonds maturing in 2017 to yield 6.25 percent.
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