Sunday, February 1, 2009

Bin Laden's Assistant

The dollar rose to a message on the environment in Pakistan, bin Laden's Assistant

The dollar rose against the euro and Swiss franc in New York on reports that the chief assistant to Osama bin Laden's terrorist network Al-Kayed is the aim of fighting the Pakistani armed forces.

Capturing Ayman al-Zhavahiri, 52-year-old Egyptian, may enhance the effectiveness of U.S. anti-terrorism campaign, as it can be in contact with Bin Laden and to know about planned attacks. The armed forces along the Afghan border, fought with more than 400 fighters, which can protect the goal of "high level" as stated by the Pakistani army.

"This is seen as a plus for the administration and for the dollar," said a senior foreign exchange trader "Commerzbank Securities" in New York cuirass Vitney, "If they had caught the main culprit, then the threat would be even reduced."

On Friday, the dollar rose 0.8% to $ 1.2289 against the euro at 17:02 New York time with a level of $ 1.2390 a day earlier, according to prices EBS. Today's increase in weekly decline in the dollar cut to 0.6%. The dollar rose from 1.2574 to 1.2689 francs, showing weekly decline of 1.2%. "The dollar rose on the assumption that Bin Laden was caught, said traders, including the president" Tempest AssetManagement "in Irvine, California, Chris Melendez.
The Japanese currency had the biggest weekly rise in four years to 106.67 yen per dollar, as Japan reduces sales of its currency and its economy is improving.

"Capture Bin Laden Assistant can provide U.S. dollar short-term growth, although concern about possible retaliatory attacks could weaken the currency," said currency strategist from "WestLB AG" in London, Michael Kloitter.

"Great growth"
The dollar has experienced a rise of 15 December following the capture of Saddam Hasseyna, then retreated after the flow of automobile explosion in Baghdad. "If it turns out that they captured Bin Laden's assistant, it will be much political support for President Bush and help to increase confidence in the U.S., supporting the dollar," said currency analyst of the "Royal Bank of Scotland Group Plc." Neil Parker. But "too many" if ", because so much is unknown."

Yesterday, the dollar dropped 1.2% on rumors of the bomb in a tunnel between Britain and France. Last week the dollar fell 1.1% on the day of the Madrid bombings, because traders believed that the attack will cause delays in the campaigns of American President George Bush and his allies in Iraq, as well as serve as a signal that the goal of further terrorist attacks could become the United States.

Honors dollar almost evaporated after the Pakistani army representative said that the national armed forces were fighting against 400 militants. Pakistan's military representative, General Shawkat Sultan has called "speculative" reports Al-Zhavahiri environment.

Sales of the yen "viable"
"Yesterday, was news that the assistant to bin Laden was surrounded, and now it is clear that they were still not captured," said Tim Mazeynk, senior currency strategist in the "Investors Bank & Trust" in Boston, which manages 1.1 trillion. $ investment assets. "Of course, if all goes well and will show his face after his arrest on television, we can see a short-term dollar rally."

Yen has risen, at least at 1.7% this week against all 16 major currencies.

The second in the world economy grew last quarter at the fastest pace in 13 years, as consumer spending and business - have increased investment, encouraging foreign demand for Japanese assets.

Japanese yen sales were viable, and now, when we see that the economy achieves greater success, and shares are rising, weakening demand for the currency through its sales declined, "said Garriett Richmond, who oversees 50mlrd. $ As the head of currency management "JP Morgan Fleming Asset Management" in London, "We can see a mark 105 yen to the dollar in the next few weeks."

Japan's "convenient"
Foreign investors last week were net buyers of Japanese assets in the 12 out of 13 weeks, as figures showed the Tokyo Stock Exchange. Japanese Nikkei 225 gained 7% this year, compared with a 2.6% decline in the Dow Jones index in the U.S. and 1.3% fall in the FTSE 100 index in Britain.

"Japan is convenient to all levels of the currency until it is combined with an increase in the stock market," said chief currency strategist "CommerzbankAG" in London, Nick Parsons. "The fact that Japanese stocks had grown up well, is behind the decision to allow ENE and grow."

Finance Minister Sadakazu Tanigaki said yesterday for the third time this week that Japan is not seeking to weaken its currency, reinforcing speculation that the Ministry of Finance ceased buying dollars through the Bank of Japan.

In doing so, he said on Friday that Japan will sell yen, if the currency does not correspond to economic fundamentals.
Following these comments, yen fell to 107.33 yen per dollar. Deputy Minister of Finance for International Affairs Zambia Mizoguchi said that Japan "if necessary to respond" to "chaotic traffic."

Export earnings
Mizoguchi declined to answer the question "whether Japan sold yen on Friday." According to traders, who deal with the Bank of Japan and wished to remain unidentified, the bank at least once this week to sell its currency.

Sales yen to support the incomes of exporters seeking to end the budget year of the country on 31 March because a stronger yen reduces earnings from exports in terms of local currency. Japan has spent 10.5 trillion. yen ($ 97.9 billion) for two months until 25 February to halt the appreciation of currency.

The wave of selling may have been taken "to prevent a mark of 100 yen per dollar by March 31," said currency strategist from the "Lehman Brothers Holdings Inc." in New York Daniel Tenengozer.

Forex Magazine
based on Bloomberg.com

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