Author Archive for IM
US to raise rate, drain reserves
Federal Reserve Chairman Ben Bernanke said Sunday the U.S. central bank has a robust strategy to exit from the extraordinary stimulus it made to counter the worst recession in decades.
The reeling Pakistan rupee
Some of the main factors for the rupee finding the floor in 2009 were the IMF program, slowdown in imports, S&P upgrade of the sovereign credit ratings, easing of inflationary pressures, return of portfolio investment to the equities market and record remittances.
Dollar poised for annual gain versus the yen
After three years hiatus, the US dollar is poised for annual gain versus the yen as market is confident of the U.S. recovery. It is expected that the Federal Reserve may withdraw stimulus which will result in higher bond yields.
China Seeks Bigger Share in World Exports
Exports of 30 million shirts help Chineses economy more than exporting one Boeng 747. This was in reference to a debate over support China should offer to labor intensive export industries versus how much it should move up the value chain. Exporting 30 million shirts creates jobs for approximately 10,000 people by which their families and 30,000 will have a comfortable life.
Lower US dollar and strong Swiss franc
The US dollar is lower but Swiss franc is strong in light post-Christmas trade Tuesday. Dollar is weak because there is not much happening – lack of fresh positive U.S. economic data, a factor that has been a major driver of recent dollar strength. Traders are trimming some of their recent bets ahead of year-end.
On the other hand the Swiss franc is strong today against its
Pakistan launches Commodity Index
The National Commodity Exchange Limited (NCEL) this weel launched the first Commodity Index of Pakistan.
The NCEL Commodity Index based on the composition of five commodities available for trading on NCEL covering gold, silver, crude oil, palm olien, and Irri-6 Rice.
The Index is designed to provide a diversified benchmark for commodities traded on the nation’s only [...]
Pakistan Government To Launch Savings Bond
Pakistan government plans to launch an investment instrument to raise as much as twenty billions rupees (US $250 million) before the end of this year. Experts believe that funds can be raised from the sale of national savings bonds even in current political situation.
Total addressable market for the sale of sovereign bond in Pakistan is estimated to be as high as Rs500 billion. By launching new investment instrument Government hopes to attract the excess money from the market that is not finding any productive outlet.
Treasury Yields High on Inflation Concern
The yield curve widened to a record level today demonstrating investors fear that an accelerating recovery will fuel inflation and hurt demand for unprecedented government debt sales. Government backed securities witnessed the largest drop since August, before the U.S. tomorrow announces the sizes of two-, five- and seven-year auctions next week.
Personal Debt Dampens Holiday Mood
Persisting fears about sovereign and related debt from Greece to Dubai will keep investors occupied into 2010 after they enjoyed one of the best years for world stocks in the past two decades.
Greek assets have taken a hammering after two credit ratings agencies downgraded the euro zone member this month on concerns about its fiscal health, blowing out spreads between Greek bonds GR10YT=RR and safer German alternatives EU10YT=RR to their widest since early April.
US Dollar Slips; Euro Recovers
The dollar fell against the euro and a basket of currencies in thin, pre-holiday trade on Monday as firmer equity prices prompted investors to book profits on the greenback’s recent gains.
Gains in European and U.S. share markets .FTEU3 .SPX helped lift risk appetite and weighed on the safe-haven dollar, although analysts say the inverse relationship between stocks and the greenback has weakened recently.