The US dollar strengthened in relation to the euro and the yen on Tuesday on new retail sales data that showed sales excluding automobiles were up in April.

Without auto sales, retail sales in the US added 0.5 percent, more than had been expected.

Still, with auto sales included retail sales were down 0.2 percent in the month as purchases at auto dealerships and auto parts stores were down 2.8 percent.

Gas station sales were also down in April, falling 0.4 percent despite the increases in gas prices.

At around 11:15 a.m. in New York, the dollar had given back some of the gains versus the euro to trade at $1.5475 to the shared currency while it took ¥104.4750 to buy a dollar.

The greenback also gained on the Australian dollar and the Swiss franc, with the dollar trading at 94.12 cents US to the Aussie while the franc traded at SFr1.0514 to the dollar.

The yen was also lower versus several higher-yielding currencies as investors continued to return to risky carry trades.

In late morning trade in New York, the yen traded at ¥13.790 to the South African rand while it was at ¥9.9661 to the Mexican peso and at ¥62.829 to the Brazilian real.

The pound weakened on declines in property prices and higher inflation in April.

Consumer inflation was up an annualized 3 percent in April, a gain of 0.8 percent since the previous month, on food and fuel prices.

Meanwhile, house price declines were becoming more widespread according to a new survey from the Royal Institution of Chartered Surveyors which found that 82 percent of surveyors reported seeing house price declines in the three months ending in April, the most widespread declines in 30 years.

In March, 66 percent of those surveyed said they had seen prices decline.

It took $1.9461 to buy a pound in late morning trade in New York, while at the same time the pound traded at 79.52p to the euro.

Days after the dollar touched a new nadir against the euro -– indeed, one euro briefly fetched $1.60, a symbolic milestone -– the beleaguered buck is enjoying a bounce.

Some even saw a parallel to politics. “Just like Hillary Clinton, when all seemed bleak, USD staged an almost improbable recovery,” wrote David Watt, a currency strategist at RBC Capital Markets late Thursday.

By this morning, one euro bought about $1.56.

Of course, the dollar has had many such minor rebounds, and they always turn out to be short-lived. Several currency experts, however, see a hint that something different might be happening this time around.

Much of the euro’s recent invincibility stems from two factors. One, economic growth in the euro zone has been remarkably impervious to events in the U.S. Two, the U.S. Federal Reserve has embarked on a dramatic campaign to cut interest rates, undermining the appeal of short-term investments in dollars, while the European Central Bank has held its rates firm.

Now two small cracks have appeared in that armor. On Thursday, Germany’s IFO survey of business sentiment came in lower than expected, indicating deteriorating conditions in Europe’s largest economy. At the same time, some investors believe that the Fed will cut its key rate next week but then take an extended pause, stabilizing the gap between U.S. and European interest rates.

If bad news out of Europe starts to accumulate and the Fed stands pat, the dollar’s slide could taper off. However, that’s probably not the end of the dollar’s travails.

“What’s the endgame?” says Art Steinmetz, a bond portfolio manager at OppenheimerFunds. “The ECB goes into an easing cycle at about the time the Fed is going into a hiking cycle.”

That’s still months away (if not more). But some are keeping a very close eye on the horizon.

Source: http://blogs.wsj.com/marketbeat

US congressman Ron Paul has launched a scathing attack against the US Federal Reserve, which the Congressman claims is printing money in order to manipulate interest rates and undermine workers wages and old people’s savings.

Paul, one of the few politicians with an insight into fiat money wrote "The greatest threat facing America today is the disastrous fiscal policies of our own government, marked by shameless deficit spending and Federal Reserve currency devaluation."

The Texan congressman went on to write in his column that the Federal Reserve “is the strangest, most dangerous advantage ever placed in the hands of a special privileged class by any Government that ever existed."

Source: www.lankabusinessonline.com

The euro gained on the US dollar and the pound on Friday after an official of the European Central Bank assured that interest rates would not drop in the Eurozone in comments ahead of a meeting to G7 finance ministers and central bankers in Washington, D. C.

In late morning trade in New York, the euro was worth $1.5823 while the pound traded at 80.23p to the euro after hitting a new low at 80.33p to the shared currency.

Consumer confidence that hit its lowest level in 26 years in the United States hurt the dollar, while the pound suffered from the assumption that the Bank of England will likely continue to cut interest rates while the ECB seems determined to hold Eurozone rates steady.

The South African rand was higher versus the greenback after yesterday’s move by the central bank there to raise interest rates to 11.5 percent, a half-percentage-point increase.

The rand traded as high as R7.7487 to the greenback before trading at R7.8055 to the dollar in late morning trade in New York.

Only the yen and the Swiss franc gained in relation to the rand on the session, with a rand buying ¥12.943 and trading at R7,8051 to the Swiss franc, as investors avoided carry trades.

The reluctance to enter into risky deals such as carry trades helped the yen and Swiss franc to gains against all major currencies.

At late morning in New York, the yen traded at ¥101.0800 to the dollar and at ¥159.9339 to the euro, while the Swiss franc was at SFr1.0002 to the greenback and at SFr1.5826 to the euro.

The pound was weaker on Tuesday after a new report from mortgage lender Halifax showed that house prices fell by 2.5 percent in March.

The price declines made it more likely that the Bank of England will cut interest rates soon.

At around 11 a.m. in New York, the pound traded at 79.81p to the euro and at 50.81p to the US dollar, while it took ¥201.8488 or SFr1.9953 to buy a pound.

The US dollar was slightly weaker versus the euro and the yen ahead of the release of the minutes from the most recent meeting of the Federal Reserve, due to be released later on Tuesday afternoon.

The greenback was trading at $1.5696 to the euro and was worth ¥102.6450 in late morning trade in New York.

Speculation that the South African Reserve Bank will hike interest rates to 11.25 percent later this week send the rand higher in relation to the US dollar.

After strengthening to R7.76475 to the greenback, the rand traded at R7.7865 at close to noon in New York.

Meanwhile, the Australian dollar saw gains on a return to carry trades as investors worried less about credit market problems and on higher prices for commodities.

The Australian dollar was worth 92.77 cents US or ¥95.1445, while it took A$1.6932 to buy a euro.

The yen and the Swiss franc both saw declines Monday as global equities markets rallied, encouraging investors to enter into risky carry trades in which they borrow money where interest rates are low in order to buy high-yield currencies.

At nearly noon in New York, the yen traded at ¥102.7200 to the US dollar, at ¥161.4757 to the euro, at ¥13.215 to the South African rand and at ¥81.855 to the New Zealand dollar.

The Swiss franc was at SFr1.0148 to the greenback,a t SFr1.5925 to the euro, and at SFr2.0159 to the pound.

Meanwhile, the pound was lower versus the US dollar on the possibility that the Bank of England will cut interest rates this month at the same time as both the European Central Bank and the Bank of Japan are expected to hold rates steady.

In late morning trade in New York, the pound traded at 50.34p to the dollar and at 79.13p to the euro.

The Australian dollar was generally lower on sentiment that economic growth there will slow and the Reserve Bank of Australia will cut interest rates.

While the aussie declined versus the US dollar to 92.81 US cents to the aussie, it still gained versus the yen to ¥95.3293 to the aussie.

The US dollar weakened versus the yen on Tuesday for the sixth session in a row on increasing sentiment that the Federal Reserve will cut US interest rates by three-quarters of a percentage point this month, to 2.25 percent.

Declines for the dollar also came after Fed chairman Ben Bernanke urged banks to write down more mortgage debt and forgive those debts to homeowners at risk of defaulting on their home loans.

The yen also gained on the euro during the day’s session, trading at ¥156.5302 to the euro and at ¥102.8350 to the dollar in late morning trade in New York.

The pound also gained on the greenback as analysts cut back on their estimates of how much the Bank of England will cut interest rates this year, going as high as $1.9891 to the pound before slipping back to $1.9859 to the pound just after 11 a.m. in New York.

The pound was weaker, however, versus the euro, trading at 76.65p to the shared currency in New York.

The Australian dollar declined versus its US counterpart as the Reserve Bank of Australia raised interest rates there to 7.25 percent but some analysts said that they believe rates will not go up again for awhile.

In addition, the Bank’s governor said that consumer spending in Australia seems to be moderating.

In late afternoon trade in New York, it cost 92.81 cents US to buy an Australian dollar.

The US dollar hit another record low versus the euro on Monday on fears that there will be more losses for banks due to US economic declines.

After going as low as $1.5275 to the euro, the dollar traded at $1.5173 to the euro in late morning trade in New York.

A report from Goldman Sachs indicates that the euro could strengthen to as much as $1.57, based on the analysis of trading patterns and prices.

The dollar was also lower versus the yen, dropping as low as ¥102.62 before trading at ¥103.7000 at around 11:30 a.m. in New York as equities markets declined and investors fled risk.

The dollar was hurt by new data showing that manufacturing activity contracted in the US in February, with the Institute for Supply Management’s manufacturing index dropping to 48.3 in February after being at 50.7 in January.

Any reading below 50 in the ISM’s index indicates a contraction rather than growth.

Despite the gains for the yen, other Asian currencies were weaker versus the US dollar on concerns that the slowing US economy will hurt demand for products from Asia.

The weakness of the U.S. dollar and the possibility of lower interest rates have drawn fresh investment to the oil market, driving the price of oil to over $103 per barrel for the first time.

An energy analyst said such conditions tend to drive investment away from currency and toward commodities, such as oil, which retain an intrinsic value while currency markets fluctuate. He said, however, that a bubble is emerging.

The analyst, Victor Shum of Purvin & Gertz, said investors are ignoring market fundamentals that indicate steady increases in U.S. crude oil supply, while forecasters predict slower growth in oil demand due to the stagnant economy.

Source: news.yahoo.com

The US dollar weakened Thursday to new lows versus the euro and the Swiss franc and to near a two-and-a-half-year low versus the Japanese yen, while Federal Reserve chairman Ben Bernanke made more comments which have analysts expecting more interest rate cuts soon.

Meanwhile, in a press conference, US President George W. Bush insisted that while the US economy has slowed, it is not headed into a recession and that his administration does not support any further steps to stimulate the economy.

The dollar touched $1.5196 to the euro in morning trade, a new record low, before recovering slightly to $1.5182 to the shared currency and traded at $1.9884 to the pound while a dollar was worth ¥105.5600 and SFr1.0524, also a record low.

The South African rand was weaker versus the yen, the Swiss franc and other currencies as investors backed away from carry trades, eroding demand for high-yielding currencies such as the rand.

The yen traded at ¥13.971 to the rand and while a Swiss franc bought R7.1905 and the rand traded at R7.5605 to the dollar.

The Canadian dollar saw gains on the rising value of exported commodities as oil and gold prices hovered near record highs, with a loonie being worth $1.0291 just before noon in New York.

British energy giant, British Gas, have broken into the wrong house. Couple David Houghton and Abby Simpson came home from holiday to find their locks picked by the company, a perfectly legal thing for British Gas to do if the couple had owed money.

Houghton has been fighting British Gas since he cancelled the contract his flat had with the company, and switched to EDF. British Gas continued to bill him from then on, but Houghton received an apology from the CEO, and thought the matter resolved.

British Gas switched the couple's metre to a pay-as-you-go unit, and left a note. The couple nextdoor were actually the one to owe British Gas money. The company has apologised, reimbursed the couple and blamed the mix up on Royal Mail.

Source: www.dailymail.co.uk

British Gas, having recently come under fire for raising gas and electricity priced by 15%, has reported annual profits of £571m up from the previous year's £95m. It's parent company, Centrica, also reported a 40% rise in it's profits to £1.95bn.

Chairman Roger Carr said: "Centrica delivered very strong financial results during another challenging year for UK energy retailers."

The average gas bill for British Gas customers has risen by 76.7% since 2003 - bringing them up to an average of £653. Electricity bills have risen by 74.3% to £413.

Source: news.bbc.com

The dollar eased further versus the euro and sterling following another round of weak US economic data, falling to 1.4708 and 1.9722, respectively. A key indicator of consumer confidence fell to its lowest level in 16-years with the University of Michigan preliminary sentiment survey dropping to 69.6, versus 78.4 from January. Industrial output in January crept up marginally to 0.1% versus a flat reading in December. Meanwhile, capacity utilization also increased slightly to 81.5% from 81.4% a month earlier. Also released was the December net capital flows (TIC), which more than halved to $60.4 billion, versus a revised $150.8 billion a month prior.

The string of soft US data reinforces fears that the economy is headed toward a recession, thereby prompting the Fed to aggressively ease rates over the coming months. Fed funds futures contracts reflected a 60% probability for the FOMC to cut rates by 50-basis points to 2.50% at the next policy setting meeting in March.

Leaders of some of the world's largest corporations made an urgent call for companies around the globe to reduce their impact on human-induced climate change and embrace a "low carbon lifestyle." A dozen corporations were represented in the call.

"There is no doubt that climate change is one of the most important issues of our time," said Sony CEO Howard Stringer. Sony hosted the event, along with the environmental group WWF. Business leaders said governments aren't doing enough.

The companies, which have already pledged themselves to their own environmental goals, will push business partners and other firms to do the same. WWF official James Leape said, "We are moving into a carbon constrained world ... a new economy."

Source: news.yahoo.com

Nevada casinos posted a 1.8 percent gain in winnings during 2007 despite a soft economy, hanging onto $12.85 billion of the nearly $170 billion bet by gamblers during the year, according to a state report released Tuesday.
While the win was the lowest since 2002 and down from the 8 percent gain in 2006, Gaming Control Board analyst Frank Streshley said an increase during tough economic times shows the gambling industry's resiliency.

'It says something about the industry when you are able to market the casino properties and increase revenues during these slow times,' Streshley said.

The win is what was left in casino coffers from the nearly $170 billion bet during calendar 2007. That means the clubs held onto 7.6 percent of all money wagered.

'Win' is a gross figure, with no operating costs or other expenses deducted. And it's casino revenue only -- separate from hotel, restaurant or bar revenues generated by the resorts.

A breakdown of the win shows that the Las Vegas Strip accounted for $6.83 billion of the total. That's also a record -- but it's well behind the more than $10.3 billion in gambling revenue in the booming Chinese territory of Macau during 2007. Macau eclipsed the Strip for the first time in 2006.

The Las Vegas Strip win of $6.83 billion was up 2.1 percent over the 2006 win. For all of Clark County, encompassing the Strip, downtown Las Vegas and other southern Nevada cities, the total was $10.87 billion, also up 2.1 percent.

Downtown Las Vegas won $632.9 million, up 0.4 percent. While slight, that's the first gain for clubs in that area in three years.

Resorts in the Reno-Sparks-North Tahoe areas in northern Nevada took in $1.05 billion, down 1.5 percent. That included $755 million for Reno, down 1.5 percent. The area-wide drop was the first in four years.

Clubs in Elko County, on the state's border with Utah, won a record $303.7 million. The 11.6 percent gain over 2006 was the largest for major markets tracked by the state.

Resorts on Lake Tahoe's south shore won $326.8 million, down 2.1 percent. The Minden-Gardnerville-Carson City win of $119.3 million was down 4 percent.

The $12.85 billion statewide win included a record $8.45 billion from slot machines, up 1.8 percent from 2006, and a record $4.23 billion from table games, up 1.9 percent.

A breakdown of games that produced the most revenue in 2007 shows the clubs won a record $1.4 billion on blackjack, a record $908 million on baccarat, and $478 million on craps.

In slots, multidenomination devices won $3.6 billion of the total. Penny slots won $1.6 billion, while quarter slots won $1.1 billion and dollar slots won $994.3 million.

Sports betting produced another $168.4 million in winnings, down 12.1 percent. Poker winnings for the clubs totaled $168 million, up 4.4 percent.

For the current fiscal year to date, the state's revenues from gambling total about $436.4 million, 6.7 percent below forecast amounts. That included $46.4 million in taxes based on the December casino win, which was down 14 percent from forecast amounts.

The club's win for December was $1.1 billion, up 3.1 percent. Streshley said factors that helped to produce the December win included a four-day New Year's holiday period and the Ricky Hatton-Floyd Mayweather fight in Las Vegas.

The chief executive of Australian supermarket giant Woolworths wants his nation's business community to stop "navel gazing" about global warming and start fighting to curb greenhouse gas emissions. Michael Luscombe spoke at a business panel talk.

The panel of large Australian company executives agreed that cutting their output of greenhouse gases would save money and reduce waste. They also said that "the business opportunities" of the green movement "far outweigh the negative side."

"My advice to companies is just get out there and do it," Luscombe said. "You might not get it all right, but you will learn a hell of a lot along the way." Woolworths has been "going green" for about a year and a half, aiming for stringent goals.

The United States said Wednesday it would resume military aid to Thailand suspended in the wake of the 2006 coup, after a democratically elected government was unveiled in Bangkok.

Deputy US Secretary of State John Negroponte "has determined and certified to Congress that a democratically elected government has taken office in Thailand, removing legal restrictions on assistance to the Government of Thailand imposed following the September 2006 coup," said Tom Casey, a State Department spokesman.

Thailand's newly elected Prime Minister Samak Sundaravej on Wednesday unveiled his cabinet, sworn in by King Bhumibol Adulyadej during a brief ceremony inside his Bangkok palace.

"We congratulate Thailand's new cabinet on its inauguration, and the Thai people on their success in re-establishing an elected government," Casey said.

The United States suspended about 24 million dollars in military aid in protest at the ouster of prime minister Thaksin Shinawatra in a bloodless coup in September 2006.

The aid cut-off involved foreign military financing, international military education and training, and peacekeeping operations.

The sanctions were imposed automatically under a US law which forbids assistance to the government of a country where an elected leader has been deposed in a coup.

Washington maintained aid for counter-terrorism, combating weapons of mass destruction and fighting communicable diseases.

Casey said the United States looked forward to "engaging across a range of issues" with Prime Minister Samak's government, "in keeping with the proud history of our warm friendship and strong alliance."

The new Thai cabinet brought close aides to Thaksin back to government.

Samak claimed the defence ministry for himself, only the third civilian ever to hold the job in Thailand.

The foreign ministry is headed by Thaksin's Oxford-educated lawyer, Noppadon Pattama, who is defending the ex-premier and his family against corruption charges filed by the previous military-backed government.

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