The News Review:

- Forex – US dollar weaker in Sydney morning trade on growing economic…
- Forex derivatives losses may be India’s subprime
- G7 forex shift came after heated discussion
- Rising euro getting out of line with fundamentals, says EU Commissione…
- Will G7 Rescue The Dollar?
- Hedge the costs of a holiday in the sun

Forex – US dollar weaker in Sydney morning trade on growing economic…
Forbes – Apr 13, 2008
dollar was weaker against major currencies in the morning session in Sydney after early gains following the Group of Seven nations and central bankers’ warning that turmoil in the global financial markets remains challenging and is likely to be more protracted than previously expected. John Noonan, a foreign exchange analyst at Thomson Financial IFR Markets, said the dollar struggled as recession worries pushed U.

Forex derivatives losses may be India’s subprime
Economic Times – Apr 13, 2008
But
that was last season. This time it?s ?Exotic?, which has
soured the flavour. At least this stands true for banks and corporates which
tried this recipe for garnishing their balance sheets. As more and more companies
come out in the open and knock the legal doors seeking an intervention, the
forex derivatives losses may well turn out to be the subprime crisis for India
Inc.

G7 forex shift came after heated discussion
Economic Times – Apr 13, 2008
After their meeting on
Friday, G7 finance ministers and central bankers issued a statement saying they
were concerned by the sharp moves in foreign exchange markets in recent weeks
code for worries that the dollar was falling too fast. While policy-makers put
on a united front at news conferences in Washington after the joint communique
was issued, G7 sources say the change in language the first major shift in four
years represented a victory for euro zone
delegations. European
policy-makers, and the French in particular, have been worried that the euro’s
surge to record highs against the dollar is robbing their businesses of
competitiveness and have long been demanding the G7 show concern on the dollar’s
slide. For the most part,
however, the United States, Britain and Canada have preferred to take a
laissez-faire approach to currencies, arguing that levels are a matter for
markets.

Rising euro getting out of line with fundamentals, says EU Commissione…
Channel News Asia – Apr 13, 2008
“The increased volatility in foreign exchange markets, which has accompanied the (recent) financial turmoil, points to the risk of exchange rate overshooting,” he said, according to a text of his remarks. He said the EU has noted “with great attention” Washington’s repeated commitment to a ’strong dollar’ policy. On Friday, the Group of Seven industrialized nations noted recent forex market moves, adopting language that seemed to signal an increased concern over the dollar which has weakened steadily in recent months. On Friday, the euro was at 1. 5805 dollars, having hit a record high 1. 5913 dollars Thursday amid growing fears for the health of the US economy. Almunia also called on those countries with the largest current account surpluses — an apparent reference to China — to allow their currencies to appreciate more.

Will G7 Rescue The Dollar?
Daily FX – Apr 13, 2008
However, as the liquidity crunch takes a severe toll on the global financial markets and Japanese inflation appears to be purely the result of volatile food and energy places, the Bank of Japan is now considered to hold a far more dovish lean. Indeed, traders should keep an eye on the. As Technical Strategist Jamie Saettele mentioned in his.

Hedge the costs of a holiday in the sun
timesonline.co.uk – Apr 13, 2008
Goldman recently put together a product that offers 130% of the rise in the Bric currencies plus your capital back if you hold for the full three-year term, although it is only available through advisers such as Seven Investment Management. If that all sounds too exotic, there are managed forex funds where a professional will pick the currencies for you, but their performance doesn’t match their promise. Of the seven funds registered in Britain, only one – Investec Managed Currency – has beaten cash with a return of 17% over the past three years, according to Killik & Co analysis. For most investors, therefore, the best way to profit remains buying good-value stocks or funds in the countries you like. In Europe, healthcare firms such as Germany’s Bayer did well during the last US recession, as did infrastructure firms such as Hochtief. And you should get the double whammy of an appreciating currency too – at least in the short term.