| Venezuela's Currency Gains for Third Day on Petroleos Bond Sale
March 26 (Bloomberg) -- Venezuela's currency gained in unregulated, parallel-market trading as the $5 billion dollar- denominated bond sale today by state oil company Petroleos de Venezuela SA may help meet demand for dollar-denominated assets. Petroleos said in a statement that its bonds were priced at 105.5 cents, or $1.05, each. The offering from the Caracas-based company may include $2 billion of 10-year dollar notes with a coupon interest rate of 5.25 percent, $2 billion of 20-year notes with a 5.375 percent coupon and $1 billion of notes maturing in 2037 and bearing a coupon of 5.5 percent. ``This issuance may temporarily contain the parallel exchange-rate depreciation and price pressures, by supplying much needed foreign exchange to the market,'' Tania Reif, an analyst with Citigroup Inc.
Economic News SUMMARY, March 8
Though Slovakias FOREX market saw lackluster trading on Wednesday and the exchange rate of the Slovak currency oscillated around 34.300 SKK/EUR the crown appreciated after the close of the session. UniBanka dealer Patrik Malec explained that foreign banks especially London ones were buying the Slovak crown in significant volumes, which moved its exchange rate to a new historic high at 34.030 SKK/EUR. The local currency thus rewrote its historic maximum of 34.060 SKK/EUR that it hit two days before the end of last year. Railway Company ZSR does not Plan Layoffs this Year
Railway network operator Zeleznice Slovenskej Republiky (ZSR) that belongs among the biggest employers in Slovakia does not plan any layoffs this year. ZSR spokeswoman Martina Pavlikova says that the number of their employees will go down only due to natural loss caused by people who will retire.
Yen Falls Versus Euro, Dollar on Increased Appetite for Risk
March 15 (Bloomberg) -- The yen fell against the euro and the dollar on speculation investors resumed borrowing in the Japanese currency to invest in higher-yielding countries. The yen dropped against all of the 16 most active currencies including the Australian and New Zealand dollars on expectations investors will resume what is known as the carry trade. U.S. stocks advanced for a second straight day. ``Equities are the leading indicator of investors' risk appetite right now and their willingness to re-establish the carry trade,'' said C.J. Gavsie, managing director for foreign- exchange trading in Toronto at BMO Capital Markets. The yen fell 0.53 percent to 155.64 per euro and dropped 0.40 percent to 117.56 per dollar at 4:49 p.m. in New York.
BOT watching banks' forex trading
The Bank of Thailand (BOT) has urged Thai banks to adjust their net foreign exchange position at the end of each day, and foreign banks within the following day, a source in the financial community said yesterday. Given the rapid strengthening of the baht, the central bank is taking a close look at the foreign currency trading of commercial banks by asking them to report their net foreign positions on a daily basis. Deputy BOT Governor Atchana Waiquamdee yesterday said it wanted to know whether the banks' currency trading was normal in relation to export transactions. Some banks have been blamed for being involving in baht speculation by selling US dollars into the market, putting additional pressure on the baht initially spurred by exporters. Exporters have largely sold off their dollar incomes amid a concern the BOT would revoke the capital reserve requirement.
Chinese yuan hits new high against US dollar
China's currency, the yuan, hit a new high against the US dollar on Monday, after reaching a central parity rate of 7.7306 yuan to the dollar, according to the Chinese Foreign Exchange Trading System. The yuan, also known as Renminbi (RMB), gained 36 basis points from Friday's reference rate of 7.7342 to the US dollar, and has strengthened 781 points since the beginning of the year when it closed at 7.8087 yuan to the dollar on the last trading day of 2006. The value of the RMB has risen about five percent since July 21, 2005, when the Chinese government launched reforms of the exchange rate system. The yuan to allowed to float against the US dollar within a daily band of 0.3 percent. The yuan climbed to 7.7386 yuan to the US dollar, breaking the 7.74 mark for the first time on March 8 this year.
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