FOREX-Relentless credit jitters hurt dollar vs euro
http://www.forbes.com/reuters/feeds/reuters/2008/0 [2008-7-11]
Tag : limiting switch
The dollar fell against the euro Thursday,dragged down by persistent worries over the health of U.S.financial sector, as shares and bonds of the country's two mortgagefinance giants tumbled on capitalization fears. Investors were slightly reassured by comments by Federal ReserveChairman Ben Bernanke and Treasury Secretary Henry Paulson intestimony to Congress that they were doing everything possible torestore calm to financial markets.
"There is still some uncertainty that the renewed turbulence willbe reined by the measures that the Fed is promising to deliver orkeep a close eye on," said Samarjit Shankar, global FX strategistat Bank of New York Mellon in Boston.
"There is a huge switch away from U.S. equities into U.S. bonds andthat's the reason why the U.S. dollar is feeling a little pressuredright now."
Shares in Fannie Mae and Freddie Mac plunged to their lowest levelssince 1991 on Thursday, severely limiting the ability to raise thecapital needed to purchase home loans and hold down mortgage rates.
The yield spread premium for the larger Fannie Mae rose to itshighest since before the Fed's bailout of U.S. investment bank Bear Stearns Cos in March.
"The Freddie Mac and Fannie Mae story stole the limelight and justexacerbates the overall concern regarding the state and health ofthe U.S. fiancials," said Gareth Sylvester, senior currencystrategist at HiFX, in San Francisco, California.
"That just taints the overall sector and as result the U.S. dollaris being sold off," he added.
The dollar fell against the euro Thursday,dragged down by persistent worries over the health of U.S.financial sector, as shares and bonds of the country's two mortgagefinance giants tumbled on capitalization fears. Investors were slightly reassured by comments by Federal ReserveChairman Ben Bernanke and Treasury Secretary Henry Paulson intestimony to Congress that they were doing everything possible torestore calm to financial markets.
"There is still some uncertainty that the renewed turbulence willbe reined by the measures that the Fed is promising to deliver orkeep a close eye on," said Samarjit Shankar, global FX strategistat Bank of New York Mellon in Boston.
"There is a huge switch away from U.S. equities into U.S. bonds andthat's the reason why the U.S. dollar is feeling a little pressuredright now."
Shares in Fannie Mae and Freddie Mac plunged to their lowest levelssince 1991 on Thursday, severely limiting the ability to raise thecapital needed to purchase home loans and hold down mortgage rates.
The yield spread premium for the larger Fannie Mae rose to itshighest since before the Fed's bailout of U.S. investment bank Bear Stearns Cos in March.
"The Freddie Mac and Fannie Mae story stole the limelight and justexacerbates the overall concern regarding the state and health ofthe U.S. fiancials," said Gareth Sylvester, senior currencystrategist at HiFX, in San Francisco, California.
"That just taints the overall sector and as result the U.S. dollaris being sold off," he added.
Related News »
In Focus »
footwear exports
Last month, European footwear manufacturers proposed extending anti-dumping measures against ..
B2B Keywords:
International market Chinese Importer Wholesale trade Wholesale products World trade Wholesale distributors International trade Foreign trade Wholesale distributor Importers Import export business Sell online Help u sell Global trade How to market a product Online supplier Wholesale product
International market Chinese Importer Wholesale trade Wholesale products World trade Wholesale distributors International trade Foreign trade Wholesale distributor Importers Import export business Sell online Help u sell Global trade How to market a product Online supplier Wholesale product
Feature Products»
Hot Products: A | B | C | D | E | F | G | H | I | J | K | L | M | N | O | P | Q | R | S | T | U | V | W | X | Y | Z | 0-9
-
-
About Us -
Links -
Privacy Policy -
Terms of Use -
Site Map -
Contact Us -
Call Center: 0086-95105561 © 2007 Tootoo.com -
