| Currencies: Signs of recovery elevate won
HONG KONG: The South Korean won rose to the strongest in six weeks on Wednesday as overseas investors bought stocks for a second day on signs the economy is recovering from a slowdown. "Rising stocks are leading expectations of more inflows of funds, boosting the won," said Hideki Hayashi, a Tokyo-based foreign-exchange strategist at Shinko Securities. "Steady export numbers in addition to expectations the free-trade agreement with the U.S. will help increase overseas sales are also supportive for the won." The won rose to 936.30 against the U.S. dollar, according to Seoul Money Brokerage Services. It touched 935.20, the highest since Feb. 16. Elsewhere, Taiwan's dollar touched a two-week low on speculation overseas investors will borrow the currency to purchase higher-yielding assets abroad.
Currency investment trainer indicted
A man who prosecutors said referred to himself in a journal as a "financial serial killer" has been indicted by a federal grand jury on charges of stealing millions from investors who thought he was leading them to riches in currency investments and real estate. Prosecutors said Joel Nathan Ward, a frequent commentator and speaker on foreign exchange trading, was charged Thursday with nine counts of fraud and money laundering. Prosecutors said many of his victims were members of his family, friends and people who enrolled in a foreign currency investment training program he operated in Sacramento. Attempts to locate Ward's attorney or reach family members were unsuccessful. Prosecutors said Ward was accused of defrauding investors in a purported real estate investment scheme in Mississippi.
Rupee hits new high against dollar
The rupee surged strongly against the US currency for second straight day and on Tuesday (April 3) ended about 39 paise up at 43.0625/0725 following heavy dollar selling by traders amid suspected intervention by the central bank. In fairly active trade at the Interbank Foreign Exchange (forex) market, the local currency moved between 43.04 and 43.30 during the day after resuming firm at 43.26/28 a dollar. In the first trading session after the Reserve Bank of India (RBI) hiked the repo rates and Cash Reserve Ratio on Friday, traders and foreign banks reportedly sold dollars to take advantage of raised cash rates in the call money market, forex dealers said. The rupee has gained nearly 68 paise in the consecutive two trading sessions. The market remained closed on Monday as banks remained away to make final settlements for the financial year ending March 31.
Mexico to Sell Warrants to Allow Swap of Foreign Debt (Update3)
March 13 (Bloomberg) -- Mexico plans to sell securities that will allow investors to swap bonds denominated in foreign currencies for peso debt, part of a push to make the country's finances less vulnerable to declines in the currency. Investors who buy the Mexican warrants will be able to exchange bonds in dollars, euros, German marks and Italian liras that are due between 2008 and 2033 for peso-denominated bonds maturing in 2014 and 2024, according to investors who received the terms of the proposal. This is the second time Mexico uses warrants, which allows investors to make money as the yield gap between the government's foreign-currency bonds and peso bonds narrows, to help attract investment to its local bond market. Last year, investors exchanged about $2.9 billion in foreign currency debt for peso bonds in four separate transactions.
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