Tuesday, October 25, 2005
Bernanke, Confidence Numbers Hit US Dollar
Reuters has an update on the US dollar. "The dollar fell on Tuesday after weaker-than-expected U.S consumer confidence data hinted that the impact of hurricanes and soaring energy prices could slow the economy's momentum and the pace of interest rate rises."
"'The confidence numbers and component numbers were a little weaker than even the weakest projections, so the dollar is getting hit a bit here across the board,' said Ed Stapleton, head of foreign exchange at Fortis Bank in New York."
"The euro rose to session highs around $1.2115 according to Reuters data, steeply up from around $1.2065 shortly before the consumer confidence report. Around noon in New York, the euro was trading at $1.2091, up about 0.9 percent from late on Monday in New York. Against the yen the dollar was trading lower at 114.85 yen, compared with around 115.17 yen shortly before the consumer confidence report and down about 0.5 percent."
"Sterling was trading up 0.9 percent at $1.7848. The dollar was trading down 0.8 percent at 1.2770 Swiss francs."
"The dollar has been boosted for much of 2005 by Fed rate hikes and rising yields, which have burnished the appeal of dollar-deposits to foreign investors. But if softer economic growth caused the Fed to raise interest rates less steeply than expected, that could weigh on the dollar."
"Gold futures climbed almost as $8 an ounce Tuesday to close at a one-week high as uncertainty surrounding Ben Bernanke's nomination as the next chairman of the Federal Reserve put pressure the dollar. Gold for December delivery climbed as high as $475.80 an ounce on the New York Mercantile Exchange, a level not seen since Oct. 18."
"'The foreign-exchange markets apparently think he is less concerned with budget deficits, and that could be why the dollar has sagged and in turn yielded some minor support to gold,' Nell Sloane said."
"Indeed, 'once the world, particularly the foreigners who have been supporting our massive current-account deficit, becomes more and more familiar with many of Mr. Bernanke's past remarks, they will become increasingly less inclined to be 'long' the U.S. dollar,' said Richard Sacks, a managing partner at Brick Capital Partners LP."
"December silver closed up 11.7 cents to end at $7.825 an ounce after tapping a one-week high of $7.87. December palladium closed at $221.55 an ounce, up $7.75. Sister metal October platinum climbed $12.80, or 1.4%, to close at $945.60 an ounce."
"'The confidence numbers and component numbers were a little weaker than even the weakest projections, so the dollar is getting hit a bit here across the board,' said Ed Stapleton, head of foreign exchange at Fortis Bank in New York."
"The euro rose to session highs around $1.2115 according to Reuters data, steeply up from around $1.2065 shortly before the consumer confidence report. Around noon in New York, the euro was trading at $1.2091
"Sterling was trading up 0.9 percent at $1.7848. The dollar was trading down 0.8 percent at 1.2770 Swiss francs."
"The dollar has been boosted for much of 2005 by Fed rate hikes and rising yields, which have burnished the appeal of dollar-deposits to foreign investors. But if softer economic growth caused the Fed to raise interest rates less steeply than expected, that could weigh on the dollar."
"Gold futures climbed almost as $8 an ounce Tuesday to close at a one-week high as uncertainty surrounding Ben Bernanke's nomination as the next chairman of the Federal Reserve put pressure the dollar. Gold for December delivery climbed as high as $475.80 an ounce on the New York Mercantile Exchange, a level not seen since Oct. 18."
"'The foreign-exchange markets apparently think he is less concerned with budget deficits, and that could be why the dollar has sagged and in turn yielded some minor support to gold,' Nell Sloane said."
"Indeed, 'once the world, particularly the foreigners who have been supporting our massive current-account deficit, becomes more and more familiar with many of Mr. Bernanke's past remarks, they will become increasingly less inclined to be 'long' the U.S. dollar,' said Richard Sacks, a managing partner at Brick Capital Partners LP."
"December silver closed up 11.7 cents to end at $7.825 an ounce after tapping a one-week high of $7.87. December palladium closed at $221.55 an ounce, up $7.75. Sister metal October platinum climbed $12.80, or 1.4%, to close at $945.60 an ounce."
# posted by Ben Jones @ 11:09 AM 
