The News Review:

- Forex – Pound rebounds after weak housing data on improved credit…
- Forex – Dollar range-bound ahead of key US jobs data
- SNB posts Q1 loss of 3.97 billion Swiss francs due to forex impact
- India’s forex reserves decline by $663 mn
- Forex reserves drop by USD 663 mn

Forex – Pound rebounds after weak housing data on improved credit…
Forbes – May 2, 2008
3 percent monthly drop in the Halifax house price survey weighed on the pound, but the pressure was short-lived as investors took a longer-term view and were heartened by a BoE report yesterday. In its half-yearly Financial Stability Report, the BoE said credit-related losses may have been overstated by banks and that assets looks fundamentally cheap. Since most of these assets are denominated in dollars and pounds, these two currencies have proved resilient in the face of poor economic data.

Forex – Dollar range-bound ahead of key US jobs data
Forbes – May 2, 2008
labour market is being hit by the credit crunch. The market is forecasting a 75,000 loss in jobs in April after March’s 80,000 fall, although ADP’s forecast for a 10,000 increase will have caused expectations to improve. ‘If we see a payrolls outcome in line with our forecast (of -45,000) or better, then that should ease some recession fears generated by consecutive contractions in the job market in the first quarter of the year and support the dollar,’ said Henrik Gullberg, senior forex strategist at Calyon.

SNB posts Q1 loss of 3.97 billion Swiss francs due to forex impact
Forbes – May 2, 2008
97 billion Swiss francs, after a profit of 2. 16 billion the year before, citing the appreciation of the Swiss franc against all other major currencies which resulted in massive valuation losses on its assets. The SNB’s foreign currency investments resulted in a total exchange rate loss of 3. 80 billion francs during the period, after a 270 million profit the year before, it said.

India’s forex reserves decline by $663 mn
Economic Times – May 2, 2008
871 billion for the week ended April 25. In
the week previous to it, forex reserves had risen by USD 1. 167 billion to USD
313.

Forex reserves drop by USD 663 mn
Myiris.com – May 2, 2008
25, 2008, mainly due to the decline in foreign currency and assets collections, on a weekly basis. As per the weekly statistical supplement of the Reserve Bank of India (RBI) released on May 02, 2008, foreign currency and assets fell USD 660 million to USD 302,328 million. During the same period, the reserve position in the International Monetary Fund (IMF) dropped by USD 3 million to USD 486 million, while gold reserves stood flat at USD 10,039 million. Foreign currency assets expressed in USD include the effect of appreciation or depreciation on non-US currencies (such as Euro, Sterling and Yen) held in reserves.