Survey
* Your assessment is very important for improving the workof artificial intelligence, which forms the content of this project
* Your assessment is very important for improving the workof artificial intelligence, which forms the content of this project
Business Daily Date: 13.10.2014 Page 21 Article size: 246 cm2 ColumnCM: 54.66 AVE: 103866.66 Dollar steady versus euro, yen amid lower US yields The dollar steadied against the euro and yen on Friday, though lower US yields capped its rebound after the Federal Reserve's dovish undertones sapped the greenback's recent strength. The euro was flat at $1.2695, but still within reach of a low of $1.2664 struck overnight after a plunge in German ex ports raised fears of a recession in Eu rope's largest economy and reinforced a case for more action by the European Debt markets have recently been pushing out the timing of a likely Fed rate increase further into 2015 amid worries about slowing global growth and a general lack of inflationary pres sure in the major economies. All of that has made markets much more jittery, as seen in a jump in the CBOE volatility index, a measure of in vestor anxiety, to highs not seen since early February. Analysts said the pick Central Bank. up in volatility means the dollar's road The dollar was little changed at higher is likely to get bumpier. 107.88 yen after touching a threeweek Societe Generale strategist Kit low of 107.53 overnight. It was on track Juckes said the dollar has rallied too to lose about 1.8 per cent on the week, far, too fast since July, on the back of which would be its largest weekly loss good data and a small change in the since March. FOMC language. On October 1, the dollar surged to In a note published Thursday and a sixyear high of 110.09 yen on factors titled Don't buy the dollar, just sell the including expectations for an early rate euro, Juckes said the European outlook hike by the Fed. has taken a turn for the worse, with re However, a recent decline in US cent data confirming that the Ukraine Treasury yields have helped under crisis and sanctions on Russia are hurt mine its strength. ing growth in Germany. "The Fed mentioned the strong "Maybe it's time for the FX market dollar after Japanese authorities had to stop looking for a stronger dollar and already expressed their concerns to focus on the risk of further euro weak wards a weak yen. ness instead," he said. This puts the two countries in step REUTERS. and has tempered the bullish dollar/yen scenario," said Koji Fukaya, president at FPG Securities in Tokyo. "While the rates markets were less sanguine about prospects of an earlier Fed rate hike, the currency market looks to have gone a little too far," he said. "The stall in the (dollar) rally is likely to prompt speculators to unload their dollar positions." The Fed's September meeting min utes, released on Wednesday, suggested the US central bank was in no hurry to hike rates, with a surprise mention of the greenback's strength further sober ing dollar bulls. Federal Reserve chief Janet Yellen.The US central banksaid it was in no hurry to hike rates, sapping the greenback's strength, afp Ipsos Kenya Acorn House,97 James Gichuru Road Lavington Nairobi Kenya