| 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.
Sebastian River Holding's, Inc. Adds an Additional 35000000 Iraq ...
SEBASTIAN, Fla.--(BUSINESS WIRE)--Sebastian River Holding's Inc. (Pink Sheets: SBRV) today announced that the company has added an additional 35,000,000 Iraq Dinar to its foreign currency portfolio. This purchase gives Sebastian River Holding's Inc. a total of 135,000,000 Iraq Dinar in its foreign currency portfolio. The Company's goal is to acquire, a total of 1 billion Iraq Dinar to its portfolio. The company feels that this investment will increase dramatically in the near future. As of today 1,000,000 Iraq Dinar is equal to $786.78 USD, according to the Central Bank of Iraq (CBI). Since it is nearly impossible to purchase directly from CBI, 1,000,000 Iraq Dinar is being sold as high as $1340 USD here in the United States. Iraq news sources state that a revalue of the Iraq currency is in the near future.
Foreign currency investments may be off mark
Everyone seems to hate something these days. Hate clowns? Meet your fellow haters at IHateClowns.com. Think cilantro is a noxious weed? Go to IHateCilantro.com. Hate the Red Sox? Head to Yankee Stadium. In the investment world, everyone seems to be hating the dollar: The consensus is that the dollar will decline in value against other currencies. If you're a dollar hater, you have several new ways to bet against the buck. But pouring money into foreign currencies might not be the best way to display your pique. In the short term, money tends to flow to the country with the highest interest rates. Those flows, in turn, drive currency values up and down. For example, Japanese investors who buy U.S. Treasury bonds have to convert yen into dollars to make the purchase.
NAPOCOR seeking new power rate cut
State-owned National Power Corp. is set to file an application with the Energy Regulatory Commission (ERC) for another power rate reduction. NAPOCOR sources disclosed that the power firm would file applications to reduce its generation rate adjustment mechanism (GRAM) and currency exchange rate adjustment (ICERA) covering 2005 to 2006. It was during this period that NAPOCOR enjoyed foreign exchange gains, so it is possible that the state-owned power firm would apply for lower ICERA, sources pointed out. It was also during this period that purchases from independent power producers (IPPs) of NAPOCOR also improved. "It is possible that the ICERA could be lower. There was also a noted lower fuel cost during these periods," sources said.
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