KARACHI (SANA): Pakistan’s foreign exchange reserves rose by $130 million in the week that ended on Aug. 8 to $11.85 billion from $11.72 billion the previous week, the central bank said.
The State Bank of Pakistan’s reserves rose to $8.36 billion from $8.31 billion a week earlier, while reserves held by commercial banks also rose to $3.49 billion from the previous week’s $3.41 billion, the central bank said in a statement.
Foreign reserves hit a record high of $16.5 billion in October 2007 but fell steadily to $6.6 billion by November of last year, largely because of a soaring import bill.
Pakistan agreed in November to an International Monetary Fund emergency loan package of $7.6 billion to avert a balance of payments crisis and shore up reserves. The fund last week increased the loan to $11.3 billion.
The IMF has released a third tranche of $1.2 billion, which was received on Wednesday and will be reflected in next week’s data.
On Aug. 1, the central bank stopped using foreign exchange to pay for diesel and other refined petroleum products, which will force importers to obtain the dollars they need in the market.
The central bank will continue to provide foreign exchange for crude oil imports until Feb. 1 next year.link...
Tuesday, September 1, 2009
Commencing Forex.
Although it is now easy to commence forex currency trading, it can be quite risky and may not be suitable for all investors. Forex currency trading is not as straight-forward as trading stocks on the stock exchange. There are many, many variables to take into consideration when it comes to determining fluctuations in currency values.link...
What is Forex Currency.
Sometimes you get more for every dollar you exchange than other times. You will notice that foreign exchange rates never remain the same and are constantly changing. This volatility in exchange rates can enable you to make a lot of money in the forex market with forex currency trading.link...
Monday, August 31, 2009
The Lee Forex Enterprise.
"Trading robot has struggled thru the years with bad coding or banned from broker but since then most of them have been improved. Some of those system that are raking the market by the tons won't want to sell them. And those who sells them are quite stingy to share licenses. - Join Us Today. Our Community.link...
Money management.
Money management. There is nothing more that you need to have as a base to your money making experience than a way to track the money you are putting in, losing and winning on the Forex market. You need to have the fundamentals of money management to assess and support the strategies that you are employing on the Forex market. There is no point just investing and not being able to track your performance.
Your money diary is one of the key ways you are going to be able to track your progress and see where the mistakes are being made. Having a holistic time table and juxtaposing your money matters right next to it is one key ways that you are going to see if you are taking the right steps and the right direction towards the Forex market.LINK...
WORLD FOREX:
WORLD FOREX: Risk Aversion Helps Dollar, Yen Higher
The rise in risk aversion, which is driving global equities lower, is also helping to undermine the euro and the pound.
See chart at
http://www.dowjoneswebservices.com/chart/view/2553
Much of the negative sentiment was coming from China, where the Shanghai Composite Index fell a sharp 4.7% on the day after the country admitted that domestic growth may not be able to take up the slack of falling exports.
This is expected to add to pressure on the Fed to take a more cautious line on the economic recovery - reversing some of the optimism that was fueled by last Friday's strong U.S. non-farm payrolls data.
Even before the Chinese news, the Dow Jones Industrial Average had lost 1.0% and the Nikkei had started its 1.4% slide on the day.
The gloom was sustained by European equities with most markets losing up to 0.5%.
The dollar is not only benefiting from the rise in risk aversion but also from the latest evidence that foreign interest in the U.S. remains strong. An auction of three-year Treasury bills Tuesday not only attracted a very strong 2.89 bid-to-cover ratio but a higher-than-usual 62% of the total largely went to overseas central banks.
Another auction of 10-year bonds is due to take place shortly before the results of the Federal Open Market Committee meeting are announced at 1815 GMT.
Attention is also focused on the details of the Bank of England's latest Inflation Report. There is widespread concern that the central bank will play down recent evidence of an economic recovery to help justify its decision to extend quantitative easing last week.
The pound was already under pressure after the latest U.K. employment numbers Wednesday showed a larger-than-expected rise in the number of jobless, which implies a downside risk for consumption.
By 0915 GMT, the dollar had fallen to Y95.67 from Y95.93 late Tuesday in New York, according to EBS.
The euro was down at $1.4130 from $1.4154 and to Y135.20 from Y135.74. The dollar was down at CHF1.0809 from CHF1.0816, while the pound had dropped to $1.6455 from $1.6478.
In Eastern Europe, the euro is mostly higher, rising to HUF274.78 from HUF272.36, to PLN4.2084 from PLN4.1754 and to CZK25.837 from CZK25.793.
-By Nicholas Hastings, Dow Jones Newswires; 44 20 7842 9493; nick.hastings@dowjones.com
TALK BACK: We invite readers to send us comments on this or other financial news topics. Please email us at TalkBackEurope@dowjones.com. Readers should include their full names, work or home addresses and telephone numbers for verification purposes. We reserve the right to edit and publish your comments along with your name; we reserve the right not to publish reader comments.LINK...
LONDON (Dow Jones)--Fears that the Federal Reserve will submit a dovish assessment of the U.S. economy is pushing the dollar and the yen higher in Europe Wednesday.
The rise in risk aversion, which is driving global equities lower, is also helping to undermine the euro and the pound.
See chart at
http://www.dowjoneswebservices.com/chart/view/2553
Much of the negative sentiment was coming from China, where the Shanghai Composite Index fell a sharp 4.7% on the day after the country admitted that domestic growth may not be able to take up the slack of falling exports.
This is expected to add to pressure on the Fed to take a more cautious line on the economic recovery - reversing some of the optimism that was fueled by last Friday's strong U.S. non-farm payrolls data.
Even before the Chinese news, the Dow Jones Industrial Average had lost 1.0% and the Nikkei had started its 1.4% slide on the day.
The gloom was sustained by European equities with most markets losing up to 0.5%.
The dollar is not only benefiting from the rise in risk aversion but also from the latest evidence that foreign interest in the U.S. remains strong. An auction of three-year Treasury bills Tuesday not only attracted a very strong 2.89 bid-to-cover ratio but a higher-than-usual 62% of the total largely went to overseas central banks.
Another auction of 10-year bonds is due to take place shortly before the results of the Federal Open Market Committee meeting are announced at 1815 GMT.
Attention is also focused on the details of the Bank of England's latest Inflation Report. There is widespread concern that the central bank will play down recent evidence of an economic recovery to help justify its decision to extend quantitative easing last week.
The pound was already under pressure after the latest U.K. employment numbers Wednesday showed a larger-than-expected rise in the number of jobless, which implies a downside risk for consumption.
By 0915 GMT, the dollar had fallen to Y95.67 from Y95.93 late Tuesday in New York, according to EBS.
The euro was down at $1.4130 from $1.4154 and to Y135.20 from Y135.74. The dollar was down at CHF1.0809 from CHF1.0816, while the pound had dropped to $1.6455 from $1.6478.
In Eastern Europe, the euro is mostly higher, rising to HUF274.78 from HUF272.36, to PLN4.2084 from PLN4.1754 and to CZK25.837 from CZK25.793.
-By Nicholas Hastings, Dow Jones Newswires; 44 20 7842 9493; nick.hastings@dowjones.com
TALK BACK: We invite readers to send us comments on this or other financial news topics. Please email us at TalkBackEurope@dowjones.com. Readers should include their full names, work or home addresses and telephone numbers for verification purposes. We reserve the right to edit and publish your comments along with your name; we reserve the right not to publish reader comments.LINK...
FOREX-Dollar inches lower.
FOREX-Dollar inches lower vs high-yielders after Fed
Higher yielders firm after Fed says rates to stay low
* Dollar/yen steady, Japan investor repatriation moves eyed
By Kaori Kaneko
TOKYO, Aug 13 (Reuters) - The dollar slipped on Thursday after the Federal Reserve painted a less gloomy outlook for the U.S. economy but also said rates would remain low for a while, an assessment that led investors to return to commodity-linked currencies.
The Fed said it would slow the pace at which it buys Treasuries by extending the duration, but not the size, of its $300 billion programme to buy long-term government securities. [ID:nN1272730]
The U.S. central bank kept interest rates near zero and said they would likely stay there for an extended period, which dealers said scaled back market speculation that the Fed might raise rates soon.
"The Fed move basically did not have enough impact to alter the market trend of funds flowing into riskier assets," said Kazuyuki Kato, treasury department manager at Mizuho Trust & Banking.LINK...
Higher yielders firm after Fed says rates to stay low
* Dollar/yen steady, Japan investor repatriation moves eyed
By Kaori Kaneko
TOKYO, Aug 13 (Reuters) - The dollar slipped on Thursday after the Federal Reserve painted a less gloomy outlook for the U.S. economy but also said rates would remain low for a while, an assessment that led investors to return to commodity-linked currencies.
The Fed said it would slow the pace at which it buys Treasuries by extending the duration, but not the size, of its $300 billion programme to buy long-term government securities. [ID:nN1272730]
The U.S. central bank kept interest rates near zero and said they would likely stay there for an extended period, which dealers said scaled back market speculation that the Fed might raise rates soon.
"The Fed move basically did not have enough impact to alter the market trend of funds flowing into riskier assets," said Kazuyuki Kato, treasury department manager at Mizuho Trust & Banking.LINK...
Daily Forex Report - USD higher
Daily Forex Report - USD higher, consumer sentiment falls, JPY extends gains
Overview
USD traded higher Friday as the trade attempts to balance risk appetite versus safety. The AUD rallied to 11 month high in overseas trade supported by comments from RBA Governor Stevens that "normal the interest rate would be above the current 3% rate." Stevens's comments fueled RBA rate hike speculation and demand for the AUD. AUD has been one of the primary currencies benefiting from optimism about the outlook for global recovery and improving risk appetite. Improvement in risk appetite has been fueled by rising global equity markets, this week's FOMC policy statement which said that the US economy is leveling out, report that growth returned to Germany and France and Stevens comment that the global outlook is "distinctly" better. Despite these factors, concern about economic outlook in China emerged this week with a warning of overcapacity in China's industrial sector and today's report in the China Daily that China has banned expansion of steel production. The Shanghai index traded over 3% lower Friday in reaction to the news of the steel production ban. The drop in China's equity market took away some of the recent improvement in risk sentiment and sparked safe haven demand for JPY and AUD gave back all its early gains. In addition, Thursday's report of weaker than expected US retail sales and an unexpected rise in US jobless claims clouds the outlook for US recovery and the rally in US equity markets has stalled. Today's US economic data was mixed with July CPI flat and annual CPI falling the most in 59 years, industrial production and capacity utilization rising more than expected and Michigan consumer sentiment weaker than expected. The Fed is unlikely to rush to raise rates as the economy recovers because today's US CPI report shows there is little sign of inflation risk in the US and recovery is likely to be weak.LINK...
Overview
USD traded higher Friday as the trade attempts to balance risk appetite versus safety. The AUD rallied to 11 month high in overseas trade supported by comments from RBA Governor Stevens that "normal the interest rate would be above the current 3% rate." Stevens's comments fueled RBA rate hike speculation and demand for the AUD. AUD has been one of the primary currencies benefiting from optimism about the outlook for global recovery and improving risk appetite. Improvement in risk appetite has been fueled by rising global equity markets, this week's FOMC policy statement which said that the US economy is leveling out, report that growth returned to Germany and France and Stevens comment that the global outlook is "distinctly" better. Despite these factors, concern about economic outlook in China emerged this week with a warning of overcapacity in China's industrial sector and today's report in the China Daily that China has banned expansion of steel production. The Shanghai index traded over 3% lower Friday in reaction to the news of the steel production ban. The drop in China's equity market took away some of the recent improvement in risk sentiment and sparked safe haven demand for JPY and AUD gave back all its early gains. In addition, Thursday's report of weaker than expected US retail sales and an unexpected rise in US jobless claims clouds the outlook for US recovery and the rally in US equity markets has stalled. Today's US economic data was mixed with July CPI flat and annual CPI falling the most in 59 years, industrial production and capacity utilization rising more than expected and Michigan consumer sentiment weaker than expected. The Fed is unlikely to rush to raise rates as the economy recovers because today's US CPI report shows there is little sign of inflation risk in the US and recovery is likely to be weak.LINK...
FOREX-Euro rises as France.
FOREX-Euro rises as France, Germany exit recession
Upside surprises in German, French GDP buoy euro
* U.S. retail sales and jobless claims data disappoint
* Euro zone economy shrinks just 0.1 pct in 2nd quarter (Updates prices)
By Steven C. Johnson
NEW YORK, Aug 13 (Reuters) - The euro rose against the dollar for the second straight session on Thursday as data showed the euro zone's two biggest economies unexpectedly returned to growth in the second quarter of the year.
News that Germany and France pulled out of recession in the April-to-June period contrasted with disappointing U.S. retail sales data for July, which cast a shadow over an anticipated consumer rebound and sent the dollar lower against the yen.
The retail sales report and figures showing a surprise jump in U.S. workers filing first-time jobless claims last week came a day after the Federal Reserve gave its clearest signal yet that it thinks the U.S. recession is nearing an end.
"The (European) data definitely caused a rethink of what to expect from the euro zone and people are jumping all over the euro," said Andrew Wilkinson, senior market analyst at Interactive Brokers Group in Greenwich, Connecticut.
He said markets also expect the U.S. economy to recover but said Thursday's data was a reminder that "U.S. consumers are still looking at a massive debt burden that won't go away soon," suggesting a "slow and protracted" recovery.
The euro was last up 0.7 percent at $1.4282 EUR= after rising to $1.4327, its highest in a week, according to Reuters data.
Upside surprises in German, French GDP buoy euro
* U.S. retail sales and jobless claims data disappoint
* Euro zone economy shrinks just 0.1 pct in 2nd quarter (Updates prices)
By Steven C. Johnson
NEW YORK, Aug 13 (Reuters) - The euro rose against the dollar for the second straight session on Thursday as data showed the euro zone's two biggest economies unexpectedly returned to growth in the second quarter of the year.
News that Germany and France pulled out of recession in the April-to-June period contrasted with disappointing U.S. retail sales data for July, which cast a shadow over an anticipated consumer rebound and sent the dollar lower against the yen.
The retail sales report and figures showing a surprise jump in U.S. workers filing first-time jobless claims last week came a day after the Federal Reserve gave its clearest signal yet that it thinks the U.S. recession is nearing an end.
"The (European) data definitely caused a rethink of what to expect from the euro zone and people are jumping all over the euro," said Andrew Wilkinson, senior market analyst at Interactive Brokers Group in Greenwich, Connecticut.
He said markets also expect the U.S. economy to recover but said Thursday's data was a reminder that "U.S. consumers are still looking at a massive debt burden that won't go away soon," suggesting a "slow and protracted" recovery.
The euro was last up 0.7 percent at $1.4282 EUR= after rising to $1.4327, its highest in a week, according to Reuters data.
The dollar was down 0.8 percent at 95.35 yen JPY= while the euro fell 0.1 percent to 136.22 yen EURJPY=R. Sterling rose 0.5 percent to $1.6570 GBP=.
Higher-yielding currencies such as the Australian AUD= and New Zealand NZD= dollars gained more than 1 percent each, extending rises from the previous day.
Analysts said the euro zone forecast was not uniformly sunny, noting the economy of the 16-country zone shrank 4.6 percent from a year ago. It also contracted 0.1 percent in the second quarter after shrinking 2.5 percent in the January-to-March period.
Wilkinson said the euro's failure to push up to $1.4350 mean it may be vulnerable to a pullback on Friday.
None of that dulled investor disappointment with the 0.1 percent slide in U.S .retail sales, especially as it followed the Fed's upbeat assessment and last week's data showing U.S. employers cut fewer jobs than expected in July.
Economists polled by Reuters had expected retail sales to rise 0.7 percent, partly thanks to a boost from the government's "cash for clunkers" program that gives money to swap aging, gas-guzzling cars for new, more efficient ones.link...
Higher-yielding currencies such as the Australian AUD= and New Zealand NZD= dollars gained more than 1 percent each, extending rises from the previous day.
Analysts said the euro zone forecast was not uniformly sunny, noting the economy of the 16-country zone shrank 4.6 percent from a year ago. It also contracted 0.1 percent in the second quarter after shrinking 2.5 percent in the January-to-March period.
Wilkinson said the euro's failure to push up to $1.4350 mean it may be vulnerable to a pullback on Friday.
None of that dulled investor disappointment with the 0.1 percent slide in U.S .retail sales, especially as it followed the Fed's upbeat assessment and last week's data showing U.S. employers cut fewer jobs than expected in July.
Economists polled by Reuters had expected retail sales to rise 0.7 percent, partly thanks to a boost from the government's "cash for clunkers" program that gives money to swap aging, gas-guzzling cars for new, more efficient ones.link...
US DOLLAR
FOREX: Ringgit Likely To Be Higher Against US Dollar
KUALA LUMPUR, Aug 15 (Bernama) -- The ringgit is likely to be higher against the US dollar next week following the more upbeat outlook for stock markets, dealers said.
"The positive market sentiment on Bursa Malaysia will encourage more buying of the local currency," one of the dealers said.
Analysts said that signs of the Asian economies coming out from an economic downturn will add confidence to the equities markets and boost Asian currencies.
Asian markets rebounded on Thursday following the US Federal Reserve's decision to keep key interest rates near zero.
The improved market sentiment in Asian markets was also driven by news of an improved global economic outlook after Germany and France reported economic growth in the second quarter of the year.
According to the analysts, the improving economic outlook in the European zone helped to offset weak US retail data.
KUALA LUMPUR, Aug 15 (Bernama) -- The ringgit is likely to be higher against the US dollar next week following the more upbeat outlook for stock markets, dealers said.
"The positive market sentiment on Bursa Malaysia will encourage more buying of the local currency," one of the dealers said.
Analysts said that signs of the Asian economies coming out from an economic downturn will add confidence to the equities markets and boost Asian currencies.
Asian markets rebounded on Thursday following the US Federal Reserve's decision to keep key interest rates near zero.
The improved market sentiment in Asian markets was also driven by news of an improved global economic outlook after Germany and France reported economic growth in the second quarter of the year.
According to the analysts, the improving economic outlook in the European zone helped to offset weak US retail data.
During the week, the ringgit rebounded against the US dollar on Thursday as gains in share prices on the local bourse helped to boost demand for the local currency.
"However, government intervention could cap advances in Asian currencies," a dealer said.
The ringgit ended the week weaker against the US dollar, reversing its earlier gains as it came under selling pressure on suspected intervention by the authorities to rein in the ringgit's advance.
The dealers said the authorities tracked the movements of regional currencies, especially Asian.
On Friday, the Singapore dollar advanced against the US dollar but its strength was capped by concerns about possible intervention by the central bank.
It was also widely believed that the Thai central bank intervened in the market to contain the baht's advance.
On a week-to-week comparison, the ringgit ended the week lower against the US dollar at 3.5170/5210 from 3.4990/4020 last Friday.
The ringgit also weakened against the Singapore dollar at 2.4363/4414 on Friday, down from 2.4343/4384 last Friday, and was also weaker against the Japanese yen at 3.6939/7001 from 3.6770/6813 previously.
However, the local currency strengthened against the British pound at 5.8220/8304 on Friday from 5.8507/8571 last Friday as well as against the euro at 5.0223/0297 from 5.0239/0292 previously.link...
"However, government intervention could cap advances in Asian currencies," a dealer said.
The ringgit ended the week weaker against the US dollar, reversing its earlier gains as it came under selling pressure on suspected intervention by the authorities to rein in the ringgit's advance.
The dealers said the authorities tracked the movements of regional currencies, especially Asian.
On Friday, the Singapore dollar advanced against the US dollar but its strength was capped by concerns about possible intervention by the central bank.
It was also widely believed that the Thai central bank intervened in the market to contain the baht's advance.
On a week-to-week comparison, the ringgit ended the week lower against the US dollar at 3.5170/5210 from 3.4990/4020 last Friday.
The ringgit also weakened against the Singapore dollar at 2.4363/4414 on Friday, down from 2.4343/4384 last Friday, and was also weaker against the Japanese yen at 3.6939/7001 from 3.6770/6813 previously.
However, the local currency strengthened against the British pound at 5.8220/8304 on Friday from 5.8507/8571 last Friday as well as against the euro at 5.0223/0297 from 5.0239/0292 previously.link...
Monday, August 24, 2009
CORRECT:WORLD FOREX
CORRECT: =WORLD FOREX: Euro Extends Decline, Drops Below $1.4200 :
(The stories "=WORLD FOREX: Dollar Hurt Vs Yen By Disappointing Data," published at 11:05 a.m. EDT and "=WORLD FOREX: Euro Extends Decline, Drops Below $1.4200," published at 2;00 p.m. EDT, both incorrectly identified Alan Ruskin's organization. The correct version follows.)
By Don Curren
Of DOW JONES NEWSWIRES
TORONTO (Dow Jones)--Sustained selling in stocks and commodities pushed the euro and other risk-sensitive currencies lower in afternoon trading Friday.
The losses in stocks and commodities and underlying risk aversion in markets Friday added to the selling pressures stemming from disappointing U.S. economic data in earlier trading.link...
"It's still the general risk aversion that's the theme that's driving the market price action," said George Davis, chief technical analyst for foreign exchange at RBC Capital Markets in Toronto.
"With stocks heavy and risk aversion higher, we're basically seeing the dollar strengthen across the board," Davis said.
In mid-afternoon trading Friday, the euro fell to an intraday low of $1.4183, according to EBS via CQG, before rebounding modestly.
At the same time, the U.S. dollar advanced to a session high against the Canadian dollar at C$1.1002, while the Australian dollar fell to an intraday low of $0.8288.
In mid-afternoon trading, the euro was at $1.4187 from $1.4282 late Thursday, according to EBS via CQG. The dollar was at Y94.71 from Y95.36. The euro was at Y134.35 from Y136.24. The U.K. pound was at $1.6493 from $1.6572, up slightly from a session low at $1.6489 also hit in afternoon trading, and the dollar was at CHF1.0730 from CHF1.0702.
The Canadian dollar was particularly vulnerable Friday in light of sharp losses in crude oil futures, said RBC's Davis.
Investors are paring back bets on a U.S. recovery, which had rallied at the tail end of last week on a ray of hope from July's employment report. Now, traders likely believe they got ahead of themselves, particularly after a worse-than-expected retail sales report Thursday.
On Friday, U.S. data reinforced concerns about the resilience of the U.S. economy.
The Reuters/University of Michigan preliminary August report showed consumer sentiment likely eroded in August from July.
"This data will act as a chaser to the disappointing July retail sales data, which in current circumstances is giving a further excuse for dollar shorts to square up for the week on risk negative views," said Alan Ruskin, head of international strategy at RBS.
Another report showed U.S. consumer prices fell in July at their fastest annual pace since 1950, an indication that inflation isn't a threat to the economy or the Federal Reserve - likely to keep U.S. interest rates low.
(The stories "=WORLD FOREX: Dollar Hurt Vs Yen By Disappointing Data," published at 11:05 a.m. EDT and "=WORLD FOREX: Euro Extends Decline, Drops Below $1.4200," published at 2;00 p.m. EDT, both incorrectly identified Alan Ruskin's organization. The correct version follows.)
By Don Curren
Of DOW JONES NEWSWIRES
TORONTO (Dow Jones)--Sustained selling in stocks and commodities pushed the euro and other risk-sensitive currencies lower in afternoon trading Friday.
The losses in stocks and commodities and underlying risk aversion in markets Friday added to the selling pressures stemming from disappointing U.S. economic data in earlier trading.link...
"It's still the general risk aversion that's the theme that's driving the market price action," said George Davis, chief technical analyst for foreign exchange at RBC Capital Markets in Toronto.
"With stocks heavy and risk aversion higher, we're basically seeing the dollar strengthen across the board," Davis said.
In mid-afternoon trading Friday, the euro fell to an intraday low of $1.4183, according to EBS via CQG, before rebounding modestly.
At the same time, the U.S. dollar advanced to a session high against the Canadian dollar at C$1.1002, while the Australian dollar fell to an intraday low of $0.8288.
In mid-afternoon trading, the euro was at $1.4187 from $1.4282 late Thursday, according to EBS via CQG. The dollar was at Y94.71 from Y95.36. The euro was at Y134.35 from Y136.24. The U.K. pound was at $1.6493 from $1.6572, up slightly from a session low at $1.6489 also hit in afternoon trading, and the dollar was at CHF1.0730 from CHF1.0702.
The Canadian dollar was particularly vulnerable Friday in light of sharp losses in crude oil futures, said RBC's Davis.
Investors are paring back bets on a U.S. recovery, which had rallied at the tail end of last week on a ray of hope from July's employment report. Now, traders likely believe they got ahead of themselves, particularly after a worse-than-expected retail sales report Thursday.
On Friday, U.S. data reinforced concerns about the resilience of the U.S. economy.
The Reuters/University of Michigan preliminary August report showed consumer sentiment likely eroded in August from July.
"This data will act as a chaser to the disappointing July retail sales data, which in current circumstances is giving a further excuse for dollar shorts to square up for the week on risk negative views," said Alan Ruskin, head of international strategy at RBS.
Another report showed U.S. consumer prices fell in July at their fastest annual pace since 1950, an indication that inflation isn't a threat to the economy or the Federal Reserve - likely to keep U.S. interest rates low.
FIA wants to investigate
FIA wants to investigate all 23 forex companies :
* Addl DG says inquiries will help stop ‘white collar’ crime
* Senate body says FIA can launch investigation after obtaining proof
By Sajid Chaudhry
ISLAMABAD: The Federal Investigation Agency (FIA) on Tuesday demanded the State Bank of Pakistan (SBP) allow investigation of all 23 foreign exchange companies in the country to discourage them from engaging in illegal practices.
During a meeting of the Senate Standing Committee on Finance chaired by Senator Ahmed Ali, Federal Investigation Agency (FIA) Economic Crime Wing Additional Director General (ADG) Irfan Nadeem Syed requested SBP Governor Syed Salim Raza to allow the FIA to proceed with the investigation. He said the investigation would ensure that the exchange companies refrained from indulging in “white collar” crime.
Discussing the investigation into the Khanani and Kalia Exchange Company, Syed informed the committee that a detailed challan, comprising 250 pages of the FIA’s findings, had been submitted to court. He said the evidence had been sufficient for the court to reject the bail pleas of the accused. He claimed it was clear the company had been involved in organised crime and had indulged in affairs that were outside its purview and in violation of law. He said the investigation had taken seven months and had covered all aspects of the activities carried out by the company.
Syed said the FIA was committed to curbing organised crime from society and would fulfil the country’s expectations. He also informed the committee that an interim challan of the investigation into the affairs of the Sahara Exchange Company had been submitted in court, adding another investigation was underway to examine the ZARCO Exchange Company.
The ADG informed the committee that the preliminary investigation had revealed the owner of ZARCO owned property worth billions in the US. He said the FIA was also examining the company’s tax payments, adding it would determine if complete taxes had been paid on funds transferred abroad.
Only with proof: In response, the committee said the FIA should not be allowed to investigate companies without sufficient proof. However, FIA officials maintained there was sufficient evidence of the exchange companies involvement in unfair practices for an investigation to be required. Meanwhile, an SBP official told the committee that prior to the investigations, the exchange companies had propelled the rupee-to-dollar exchange rate to Rs 85. He said this rate had come down once appropriate action had been taken.
Regarding the suspension of the foreign exchange companies’ licences, the committee directed the SBP and the FIA to make coordinated efforts to ensure the elimination of all illegal practices.link...
* Addl DG says inquiries will help stop ‘white collar’ crime
* Senate body says FIA can launch investigation after obtaining proof
By Sajid Chaudhry
ISLAMABAD: The Federal Investigation Agency (FIA) on Tuesday demanded the State Bank of Pakistan (SBP) allow investigation of all 23 foreign exchange companies in the country to discourage them from engaging in illegal practices.
During a meeting of the Senate Standing Committee on Finance chaired by Senator Ahmed Ali, Federal Investigation Agency (FIA) Economic Crime Wing Additional Director General (ADG) Irfan Nadeem Syed requested SBP Governor Syed Salim Raza to allow the FIA to proceed with the investigation. He said the investigation would ensure that the exchange companies refrained from indulging in “white collar” crime.
Discussing the investigation into the Khanani and Kalia Exchange Company, Syed informed the committee that a detailed challan, comprising 250 pages of the FIA’s findings, had been submitted to court. He said the evidence had been sufficient for the court to reject the bail pleas of the accused. He claimed it was clear the company had been involved in organised crime and had indulged in affairs that were outside its purview and in violation of law. He said the investigation had taken seven months and had covered all aspects of the activities carried out by the company.
Syed said the FIA was committed to curbing organised crime from society and would fulfil the country’s expectations. He also informed the committee that an interim challan of the investigation into the affairs of the Sahara Exchange Company had been submitted in court, adding another investigation was underway to examine the ZARCO Exchange Company.
The ADG informed the committee that the preliminary investigation had revealed the owner of ZARCO owned property worth billions in the US. He said the FIA was also examining the company’s tax payments, adding it would determine if complete taxes had been paid on funds transferred abroad.
Only with proof: In response, the committee said the FIA should not be allowed to investigate companies without sufficient proof. However, FIA officials maintained there was sufficient evidence of the exchange companies involvement in unfair practices for an investigation to be required. Meanwhile, an SBP official told the committee that prior to the investigations, the exchange companies had propelled the rupee-to-dollar exchange rate to Rs 85. He said this rate had come down once appropriate action had been taken.
Regarding the suspension of the foreign exchange companies’ licences, the committee directed the SBP and the FIA to make coordinated efforts to ensure the elimination of all illegal practices.link...
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