The yen is weakening so much versus other currencies. The pace of decline of the yen is causing stress and strain within Asia, where central banks may be showing some concern. |
There's two things you know about the weather: One, you can't stop it; and two, you can't predict it. I wouldn't want to be heavily involved in foreign- exchange markets in next 24 hours. |
Today's economic index confirmed the Japanese economy is in a solid recovery. That's yen supportive. |
Traders have jumped on the headline and people have shouted out China is going to make the currency convertible. China is not going to make the currency convertible; they are going to allow domestic investors to invest in foreign markets. |
Underlying interest rates still remain very supportive for the U.S. dollar. |
We see this as something that will increasingly weigh on the New Zealand dollar as we move through 2006. Fresh demand will be very limited. |
Whether the minutes will tell us with any great clarity what lies ahead remains to be seen but at least for the moment the market is basically pricing in two more 25 basis points hikes. |