| Swedish Krona Slides as Policymakers Signal End to Rate Raises
March 30 (Bloomberg) -- The Swedish krona, the best performing major currency in 2006, is falling out of favor as the central bank signals the end to 13 months of interest rate increases. The krona has declined against 15 of the 16 most actively traded currencies in the first quarter because the Riksbank suggested it will probably lift benchmark rates just once more this year, after boosting them seven times. Policy makers kept their repurchase rate at 3.25 percent today, matching the forecast of 18 out of 19 economists surveyed by Bloomberg. ``The krona is losing interest rate support,'' said Max Tessier, vice president of currency management at CIBC Global Asset Management in Montreal, which manages $2 billion in foreign exchange. ``Monetary policy will quickly reach the end of the cycle.
Baht Falls as Bank of Thailand Suggests Lenders Sell Currency
March 27 (Bloomberg) -- The Thai baht dropped against the dollar, extending its slide from a nine-year high, after the Bank of Thailand suggested domestic lenders sell the currency. Deputy Governor Atchana Waiquamdee said today that banks should revert to foreign-exchange positions held on Dec. 31, which preceded a 0.9 percent drop in the baht over two weeks. The currency has since climbed 2.9 percent, eroding exports that account for about 60 percent of gross domestic product. ``The central bank's comments probably caused people who had a speculative position on the appreciation in the baht to close such positions,'' said Hideki Hayashi, a Tokyo-based foreign-exchange strategist at Shinko Securities Co. ``However, in the long term, it is difficult to stop such a move.'' Thailand's currency dropped 0.6 percent to 35.03 to the dollar in onshore trading as of 4:30 p.m.
Australia Dollar Pares Loss on Speculation Rates to Rise in May
April 4 (Bloomberg) -- The Australian dollar pared losses on speculation the central bank will raise its benchmark interest rate next month after leaving borrowing costs unchanged today. Government bonds rose. The currency fell as much as 0.9 percent immediately after the Reserve Bank of Australia said it left rates at a six-year high of 6.25 percent. The decision surprised many traders, particularly after an April 2 report showed higher-than-expected retail sales. The chance of an increase in May is 52 percent, according to a Credit Suisse index. ``The market had built itself into a frenzy, so there was a knee-jerk reaction after the announcement,'' said George Kapasakis, a senior foreign-exchange trader at Mizuho Corporate Bank Ltd. in Sydney. ``Then the bottom pickers and guys who missed out on the way up last time came in'' to buy the currency.
Kronos Worldwide Reports Fourth Quarter Results
DALLAS, March 13 /PRNewswire-FirstCall/ -- Kronos Worldwide, Inc. KRO today reported net income for the fourth quarter of 2006 of $41.2 million, or $.84 per diluted share, compared with net income of $8.5 million, or $.17 per diluted share, in the fourth quarter of 2005. For the full year of 2006, Kronos reported net income of $82.0 million, or $1.67 per diluted share, compared with net income of $71.5 million, or $1.46 per diluted share, for the full year of 2005. Net sales of $298.4 million in the fourth quarter of 2006 were $2.6 million, or 1%, lower than the fourth quarter of 2005. Net sales of $1.3 billion for the full year of 2006 were $82.7 million, or 7%, higher than the full year of 2005. Net sales decreased in the fourth quarter of 2006 primarily due to lower TiO2 sales volumes, partially offset by the favorable effect of fluctuations in foreign currency exchange rates, which increased sales by approximately $12 million.
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