| No New Cracks on Hungarian Dam Hungarian engineers didn't detect any new cracks overnight in a red sludge reservoir that was at risk of collapse, officials said, expressing hope there wouldn't be a repeat of the toxic deluge that killed at least seven people last week. online.wsj.com |
Dollar sinks further against yen, euro and Australian dollar Markets believe Federal Reserve will announce further quantitative easing for US economySpeculation that the US Federal Reserve could be about to launch a second phase of quantitative easing (QE), creating billions of dollars to reignite the world's largest economy, pushed the US currency down to a 15-year low against the yen today.Investors fear that a possible massive programme of bond purchases by the Fed will flood the financial system with dollars, eroding the dollar's value.The dollar fell 0.8% against the euro, trading at $1.40, and 0.4% against the yen, changing hands at less than Â¥81, the lowest level since 1995.The Australian dollar, backed by the growing strength of the country's abundant commodities, such as iron ore and coal, edged ever closer to parity with the dollar, touching an all-time high of $0.994."The dollar remains under pressure amid continued concerns as to the state of the US economy and the prospect of further quantitative easing," said Jason Gaywood, senior consultant at Forex.com. "Meanwhile, the euro continues to surge forward as investors shed earlier concerns about public sector debt."Money also rushed into alternative assets, pushing gold, silver and palladium to record levels. Gold, which has gained 25% this year, traded at an all-time high of $1,388.10 an ounce, while silver reached a 30-year high after gaining 4%, to $24.90 an ounce.Today's decline in the dollar came as investors speculated that Federal Reserve chairman Ben Bernanke could use a speech in Boston tomorrow to give more details about the Fed's future plans. He has already said further market intervention could help the US economy.The dollar also fell 0.7%, to $1.60, against sterling, although analysts said the pound's rise would not have a great effect as it is on a downwards trend against the euro."The pound is playing piggy in the middle between a falling US dollar and surging euro, leaving British importers and exporters in limbo," Gaywood said. "Sterling is being simply a passenger in these moves as traders focus on the respective merits of the US and eurozone economies."Foreign exchange, credit and equity markets have been on a rollercoaster so far this year on concerns that the US may fall into a double-dip recession.Speculation of a new round of QE rose after the US labour department said that first-time applications for unemployment benefit increased last week, and as new figures revealed that the US trade deficit had widened.In addition to the Australian dollar, other currencies benefited from the dollar's weakness, especially those of emerging-market countries with positive economic growth. "Given current conditions, we think the highest probability is that emerging market currencies will appreciate versus the US dollar," said Pimco, the world's largest bond investor.CurrenciesQuantitative easingDollarBen BernankeUS economyEconomicsUnited StatesElena Moyaguardian.co.uk © Guardian News & Media Limited 2010 | Use of this content is subject to our Terms & Conditions | More Feeds guardian.co.uk |
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Cholera death toll jumps in Haiti The death toll from a cholera outbreak in Haiti passes 250, health officials say, with more than 3,000 cases reported. bbc.co.uk |
Fiji Water Closes Fiji Operations Fiji Water closed its operations in Fiji, citing a big tax increase. The company said it is "willing to work through" the issue with the government. online.wsj.com |