Ramsco's Women Empowerment Initiative Recognized Among Top BRICS Businesswomen Practices for 2025    Egypt, Elsewedy review progress on Ain Sokhna phosphate complex    Gold prices end July with modest gains    Pakistan says successfully concluded 'landmark trade deal' with US    Egypt's FM, US envoy discuss Gaza ceasefire, Iran nuclear talks    Modon Holding posts AED 2.1bn net profit in H1 2025    Egypt's Electricity Ministry says new power cable for Giza area operational    Egypt's Al-Sisi, Italian defence minister discuss Gaza, security cooperation    Egypt's FM discusses Gaza, Nile dam with US senators    Aid airdrops intensify as famine deepens in Gaza amid mounting international criticism    Health minister showcases AI's impact on healthcare at Huawei Cloud Summit    On anti-trafficking day, Egypt's PM calls fight a 'moral and humanitarian duty'    Federal Reserve maintains interest rates    Egypt strengthens healthcare partnerships to enhance maternity, multiple sclerosis, and stroke care    Egypt keeps Gaza aid flowing, total tops 533,000 tons: minister    Indian Embassy to launch cultural festival in Assiut, film fest in Cairo    Egyptian aid convoy heads toward Gaza as humanitarian crisis deepens    Culture minister launches national plan to revive film industry, modernise cinematic assets    Rafah Crossing 'never been closed for one day' from Egypt: PM    I won't trade my identity to please market: Douzi    Two militants killed in foiled plot to revive 'Hasm' operations: Interior ministry    Egypt's EHA, Huawei discuss enhanced digital health    Egypt, Oman discuss environmental cooperation    Egypt's EDA explores pharma cooperation with Belarus    Foreign, housing ministers discuss Egypt's role in African development push    Egypt reveals heritage e-training portal    Three ancient rock-cut tombs discovered in Aswan    Sisi launches new support initiative for families of war, terrorism victims    Egypt expands e-ticketing to 110 heritage sites, adds self-service kiosks at Saqqara    Egypt's Irrigation Minister urges scientific cooperation to tackle water scarcity    Palm Hills Squash Open debuts with 48 international stars, $250,000 prize pool    On Sport to broadcast Pan Arab Golf Championship for Juniors and Ladies in Egypt    Golf Festival in Cairo to mark Arab Golf Federation's 50th anniversary    Germany among EU's priciest labour markets – official data    Paris Olympic gold '24 medals hit record value    A minute of silence for Egyptian sports    Russia says it's in sync with US, China, Pakistan on Taliban    It's a bit frustrating to draw at home: Real Madrid keeper after Villarreal game    Shoukry reviews with Guterres Egypt's efforts to achieve SDGs, promote human rights    Sudan says countries must cooperate on vaccines    Johnson & Johnson: Second shot boosts antibodies and protection against COVID-19    Egypt to tax bloggers, YouTubers    Egypt's FM asserts importance of stability in Libya, holding elections as scheduled    We mustn't lose touch: Muller after Bayern win in Bundesliga    Egypt records 36 new deaths from Covid-19, highest since mid June    Egypt sells $3 bln US-dollar dominated eurobonds    Gamal Hanafy's ceramic exhibition at Gezira Arts Centre is a must go    Italian Institute Director Davide Scalmani presents activities of the Cairo Institute for ITALIANA.IT platform    







Thank you for reporting!
This image will be automatically disabled when it gets reported by several people.



Dollar nose-dives on news JP Morgan buys Bear Stearns
Published in Daily News Egypt on 17 - 03 - 2008

TOKYO: The dollar nose-dived to its lowest levels in 12 1/2 years Monday in Asia, falling below 96 yen as the Federal Reserve s rate cut failed to calm market fears about more US bank write-downs.
The US Fed on Sunday cut its discount rate, or its lending rate to financial institutions, by a quarter point to 3.25 percent.
The move only managed to give a temporary lift to the US currency before it began its steep decline.
The Fed s action is needed but it leaves the current main market problems unresolved, and there seems to be nothing that can stop this (dollar-selling) flow for now, said Masafumi Yamamoto, head of foreign exchange strategy at Royal Bank of Scotland.
The dollar fell to 95.72 yen, its lowest point since August 1995, in morning trade in Tokyo before recovering to 96.84 in the afternoon. Late Friday in New York the dollar was trading at 99.17 yen. It broke below 100 yen just last Thursday.
The euro also rose to a record against the dollar, climbing as high as $1.5851 from $1.5676 Friday.
News that JPMorgan Chase had bought rival investment bank Bear Stearns - a move aimed at averting a bankruptcy - also sparked renewed market worries about the extent of the credit crisis, sending Asian stocks tumbling.
Japan s benchmark Nikkei 225 stock index fell 3.71 percent, or 454.09 points, to close at 11,787.51.
The Bear Stearns news increased players fears about credit markets and liquidity conditions, making it increasingly difficult to build dollar-long positions, said Keiichi Iguchi, a dealer at Resona Bank.
It was hard to predict how much further the dollar may fall, as there are no concrete policy measures from either the Japanese or US governments, said Masanobu Ishikawa, manager of foreign exchange at Tokyo Forex and Ueda Harlow.
Japanese officials quickly called for calm in the currency markets, but did not announce any plans to intervene to shore up the greenback by buying up dollars.
Excessive fluctuation is never favorable for the Japanese and world economy, Chief Cabinet Secretary Nobutaka Machimura said. We are concerned about the current situation with currencies fluctuating too much.
The weak dollar hurts the country s key exporters by eroding their overseas earnings when repatriated to Japan.
The dollar rose against other Asian currencies. It gained 0.92 percent against the Philippine peso to 41.690, and 0.65 percent against the Singapore dollar to 1.3860. The dollar also rose 0.80 percent against the Taiwan dollar to 30.966. -AP


Clic here to read the story from its source.