On the forex market,The dollar continued its fall versus the yen.This fall of the dollar recorded its lowest level in 14 years.However,The consequences on the metals are positives.In effect,the drop of the american forex currency provoked and increase in metals. Japanese exporter have seen their shares drop.Meanwhile, China stocks also dropped.This is also the case for European stock futures.
When the dollar decrease in value against the yen on the forex market,this consequently mean that the yen gained in value against the american forex currency.In effect,the yen gained 0.4 percent versus the dollar and it attained a level of 87.02.
On the stock market, the MSCI Asia Pacific Index also fell 0.6 percent. Japanese Automakers caused a decrease of the Topix Index. The Industrial and Commercial Bank of China Ltd led to a fall of The Shanghai Composite Index by 3.6 percent .However, Gold and zinc are on a constant increase in these conditions.
The fall on the dollar is very concerning and its lenghth is getting wider and wider.Traders are seriously affected by this fall: their risk increased and their profits are being endangered.Theses worries especially concern Asian exporters after the increase of the MSCI Asia Pacific Index .Experts and leaders on the forex markets are not willing to risk their profits because of the falling dollar on forex markets.Not to mention the harm caused to japanese exporters as their competitivity is being damaged.Japanese officials are claiming damage and they are calling for controling action against the yen appreciation on the forex markets.
The Dollar Index increased While the U.S. forex currency fell against the yen. Standard & Poor’s 500 Index futures decreased before the closure of the forex markets for the Thanksgiving holiday.Futures on the Dow Jones Euro STOXX 50 index also lost in value. US officials replied that the dollar depreciation is being closely watched and controled. Low interest rates will trigger speculation in forex markets and enhance expectations of high inflation.However, again, the US officials said that all these effects are being controled.
Japan’s Topix sank 0.5 percent .Honda Motor Co and Pioneer Corp had seen their sales and profits decrease too.
Asia’s banks became more and more concerned about theses declines.They are suffering form a lack of capital.Taiwanese and americain stocks increased.However, the Australian Dollar decreased on the forex market .It lost 1.5 percent versus the yen in the forex market.The New Zealand dollar also declined.
Taiwan’s dollar increased on the forex market while the Gross domestic product decreased.The government will soon release the corresponding data.
Vietnam’s forex currency-the dong -also decreased against the dollar on the forex market.This was caused by a devaluation of the dong in order to contol inflation and trade deficit.
However,Gold seems to be the only winner.In effect, the gold increased by significant percentages and it registeres its highest record for $1,195.13 an ounce. Zinc futures parallaly increased.
Oil also fell.Forex traders sold their contracts to preserve their gains from selling gold and euros.The OECD said declared that europe and Japan are actually sending signals of a soon recovery.
Dubai World is currently suffering from financial difficulties and uncertainties.
