Economic News

Germany's producer prices rose more than expected in April. Tuesday, statistical office Destatis reported that producer prices grew at a pace of 5.2% year-on-year in April, much faster than the 4.7% that was expected.

During early deals on Tuesday, the Malaysian currency edged down against the US dollar. The ringgit touched a low of 3.2600 against the buck at about 8:05 pm ET, compared to yesterday's North American close of 3.2385.

Tuesday morning in Asia, the European currency advanced versus the dollar, but declined against the other majors. The euro dropped to 4-day lows versus the pound and the yen. During early deals on Tuesday, the euro dropped to a 4-day low versus the British pound.

The US dollar dropped against its major counterparts during early Asian trading on Tuesday. The US dollar that closed yesterday's trading at 1.5511 against the euro, weakened to 1.5545 by about 9:40 pm ET.

On Tuesday, the yuan closed at 6.9897 versus the dollar on the over-the-counter market, higher than yesterday’s close of 7.0000.

Meanwhile, on the exchange-traded market, the yuan finished at 6.9880, while trading on Monday it ended at 6.9987.

The People’s Bank of China fixed the central parity rate of the Chinese currency at 6.9912 against the dollar this morning, compared with 7.0078 set yesterday.

The euro held close to a record high versus the dollar on speculation inflation in the euro zone is too strong for the European Central Bank to lower interest rates.

The euro was at $1.5831 per dollar as of 7:17 a.m. in New York, from $1.5832 late on Monday. It climbed to $1.5913 on April 10, the highest level since the European currency's debut in 1999. It was at 159.91 yen today, from 160.04 yen. The dollar traded at 101.05 yen, from 101.10.

On Tuesday, the yuan ended at 6.9925 versus the U.S. dollar on the over-the-counter market, higher than yesterday’s close of 6.9990.

Meanwhile, on the exchange-traded market, the yuan finished at 6.9920, while trading on Monday it ended at 6.9976.

The People’s Bank of China fixed the central parity rate of the Chinese currency at 6.9963 against the dollar this morning, from 6.9993 in the previous session.

The pound slipped versus the euro and dollar on Tuesday following a survey that showed the U.K. property market slump worsened in March to the worst since records began in 1978.

The U.K. currency traded at 80.34 pence per euro by 8:07 a.m. in London, from 80.01 on Monday. It was also at $1.9711, compared with $1.9784.

The European Banking Federation reported on Monday that the cost of borrowing in euros for three months remained at the highest this year.

The euro interbank offered rate, or Euribor, climbed almost half a basis point to 4.75%, marking the highest level since December 27. Meanwhile, the one-week rate was flat at 4.23%.

On Monday, the yuan ended at 6.9990 versus the dollar on the over-the-counter market, higher than Friday’s close of 7.0065.

Meanwhile, on the exchange-traded market, the yuan finished at 6.9976, while trading on Friday it ended at 7.0034.

The People’s Bank of China fixed the central parity rate of Chinese currency at 6.9993 against the dollar this morning, compared with 7.0012 set on Friday.

Goldman Sachs Group Inc reported on Monday that the dollar's fall is likely to start easing after the Group of Seven finance ministers indicated worry over global currency volatility.

Analysts stated that the U.S. currency may also draw support as interest-rate differentials among major nations start to stabilize.

The G-7 changed its statement on currencies for the first time in four years after its meeting in Washington on April 11, expressing concern at sharp fluctuations.

According to the report, the key element of change in the G-7 statement was the explicit reference to sharp fluctuations of exchange rates and this shows the pace of the dollar's fall has started to make the G-7 concerned over its effect on global financial markets and major economies.

On Wednesday, Canadian dollar dropped to the lowest in a week as prices of the nation's commodity exports slipped, cutting the currency's attraction. The currency also fell as investors sold higher-yielding assets on stock losses.

The currency traded at C$1.0190 per U.S. dollar by 8:50 a.m. in New York, from C$1.0133 on Tuesday. One Canadian dollar buys 98.13 U.S. cents.

On Wednesday, the yuan closed at 7.0017 versus the U.S. dollar on the over-the-counter market, down from yesterday’s record high of 7.0008.

Meanwhile, on the exchange-traded market, the yuan finished at 7.0016, while trading on Tuesday it ended at 7.0008.

The People’s Bank of China fixed the central parity rate of the Chinese currency at 7.0025 against the dollar this morning, compared with 7.0015 set yesterday.

Mizuho Capital Markets advised investors to sell the pound as signs that the economic slowdown is worsening add to pressure on the Bank of England to lower interest rates.

Neil Jones, head of European hedge-fund sales in London at Mizuho, reported on Wednesday that the U.K. currency is likely to fall further in May. Jones stated that slipping house prices and weakening consumer confidence would probably urge BoE to concentrate more on supporting growth than reining in inflation when they decide interest rates tomorrow.

The U.K. pound is expected to decline 2% against the U.S. currency in the next month while a fall to 80 pence per euro is just around the corner.

The U.K. pound weakened against the dollar and the euro on Tuesday as Halifax reported the largest monthly decline in house prices in more than 15 years during March.

The pound traded at $1.9775 by 9 a.m. in London, compared with $1.9831 just before the release, while the euro advanced to 0.7968 pounds versus 0.7935 pounds previously.