| 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.
The Philadelphia Stock Exchange Announces Launch Of PHLX Foreign ...
The Philadelphia Stock Exchange (PHLX) announced today the launch of PHLX modified foreign exchange spot rates for the Euro (XDE) and British Pound (XDB). PHLX will disseminate a modified spot rate beginning Friday, March 30. Pursuant to the Exchange's modified spot rate methodology, if the British Pound is valued at 1.9750, the modified rate will be disseminated as 197.50. "Investors will now have a readily available Euro and British Pound spot rate to assess foreign exchange trading opportunities by simply typing into their broker-dealer's website the symbols XDE and XDB," said Daniel R. Carrigan, PHLX's vice president of new product development. "These modified spot rates make the trading of PHLX World Currency Options similar to the experience of trading equity and index options in options-approved securities accounts for the retail investor," he said.
Venezuela's currency gains for third day on PDVSA bond sale
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.
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.
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.
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