Business | Markets
Fed, G20 action will impact dollar values this week
Greenback's fall causing widespread concern
- Special to Gulf News
- Published: 00:00 November 1, 2009
The coming week should be striking, with events that will directly touch on the issue of monetary policy.
The Federal Reserve meets on November 3-4. Finance ministers and central bankers of the Group of 20 nations meet in Scotland on Friday and Saturday.
The foreign exchange market will be sensitive to anything on the dollar.
Euro
The steep decline in the dollar has caused concern. The euro rose some six per cent in under two months to break above the psychologically key $1.50 level earlier in October for the first time in over a year. It has since fallen back slightly.
Range for previous week: $1.4681-$1.5061 (Dh5.3923 -Dh5.5319). Range for this week: $1.4600-$1.4900 (Dh5.3625-Dh5.4727)
Sterling
Sterling rose against the dollar and euro, generally consolidating its recovery last week after data showed another rise in UK house prices last month and improving consumer confidence.
The pound's rebound was triggered by the surprise fall in third-quarter UK output. It is on track for its biggest weekly rise against the euro in nine months.
Range for previous week: $1.6249-$1.6604 (Dh5.9682 -Dh6.0986) Range for this week: $1.6350 - $1.6650 (Dh6.0053-Dh6.1155)
Yen
The yen's strength added pressure on shares of exporters in Japan, driving the Nikkei index down 1.8 per cent. Month end trades to balance positions also added to the yen's advance.
Range for previous week: 89.90 yen-92.28 yen (Dh0.039802-Dh0.040856). Range for this week: 89.00 yen-92.00 yen (Dh0.039923-Dh0.041269)
HSBC Global Markets Bank Middle East
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