Bank of Japan Surprises the Markets

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The Bank of Japan took markets by surprise by doubling the incentives whose aim is to spur bank lending in the country. The move had immediate effect by weakening the Japanese yen and boosting the Nikkei 225 index on the Tokyo stock exchange. The central bank hopes that the increased lending will stimulate economic growth. It will expand two programs where it offers fixed-rate loans at rock-bottom interest rates to commercial banks. It will also lengthen the duration of the loans, making it easier for financial institutions to profit even…

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US Dollar falls after Weak Economic data

The US dollar fell downwards against its major rivals after a series of disappointing economic data that came from US. Additionally, jobless claims rose to 339 000, missing the median expectation for January of 330 000. Previously the US currency has jumped up against the Australian dollar after unemployment in Australia reached its highest rate in a decade. According to the recent statistics, the Australian economy lost 3700 job during the first month of 2014. The Aussie went downwards after the unemployment in Australia increased to 6% in January, despite the…

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The Dollar rises against the Yen

The United States dollar rose briefly against the Yen after hitting a bottom of 102 last afternoon. The upward course of the dollar was helped by the fact that the chairman of the Federal Reserve Janet Yellen refused to criticize Japan for its expansionary monetary policy which has led to a severe depreciation of the Japanese currency. This comes as a surprise due to the fact that some members of the House of Representatives have pushed Yellen to introduce some criticism for Japan’s unprecedented monetary easing program on the next…

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Chinese Remnibi increases in popularity

The popularity of the Chinese Remnibi (RMB) continues to increase. According to a recent statistics it currently ranks as the eight most used currency in the world. The rise of the Remnibi is caused by the increasing volume of Chinese trade in combination with the fact that RMB is already used as a part of various financial portfolios. The fact that the Chinese currency has gained more than two percent against the US dollar during 2013, makes it very attractive for investors who are searching for ways to store and…

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Increasing Anxiety in Emerging Markets

Many international investors sold emerging market currencies and equities as anxiety grows around the ability of developing nations to successfully stimulate enough economic growth. Currencies such as the Russian Rouble, the Argentinian Peso and the Turkish Lira have recently hit multiyear bottoms. The current selloff in the emerging market comes in the context of larger problems in the international economy such as the shifting patterns of the US monetary policy and the troubles that China has in reorienting the economy from a export driven to a local demand-driven economy. In…

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