Trading
Yukos storm hits rouble
MOSCOW -- The arrest of Mikhail Khodorkovsky, chairman of oil company Yukos, and the freeze on his 44% stake in the firm will lead to rouble volatility -- despite the central bank’s current efforts to smooth fluctuations in the exchange rate, analysts…
US abandons strong dollar policy -- but will Asia?
The G-7 communiqué at the IMF/World Bank annual meetings in Dubai marked the end of the US administration’s ‘strong dollar’ policy. But does it also signal a change in Asia’s preference for a strong dollar?
Risk management for Kiwi wine exporters
With the booming popularity of New Zealand wines in the US, the threat of Kiwi dollar appreciation looms large over the New Zealand wine-making industry. Wes Price in ANZ Investment Bank’s consultative risk management group in Melbourne, describes a…
IMF fuelled record trading
NEW YORK -- US banks’ financial results last week added to the evidence that the third quarter witnessed exceptionally high FX trading revenues, chiefly as a result of explosive moves following the International Monetary Fund’s meeting in September.
‘Discount forward’ for hedging euro/sterling
With euro/sterling forecast to strengthen next year, Danny Goldblum, from HSBC’s global FX structuring team in London, proposes a solution to give a UK corporate that imports from Europe the protection of a forward contract at an improved rate
Seasonal yen patterns
Dollar/yen’s statistically significant seasonal pattern bottoms in mid-October and rises through mid-January. Greg Anderson, senior FX strategist at ABN Amro in Chicago, recommends looking for a spike in the flat period to come and selling into it
Traiana goes live, adds brokers
NEW YORK -- The e-FX prime brokerage industry picked up momentum last week, as the first banks went live on Traiana’s automated FX prime brokerage software and two more key prime broker banks signed up for the system.
Changing fortunes
September’s G-7 communiqué was a departure from its usual bland messages, and Asian currencies have reacted accordingly. Jimmy Koh (right), head of economics treasury research at United Overseas Bank in Singapore, explores some of the likely future…
SuperDerivatives spices up Xerox Mexicana
MEXICO CITY -- US printing technology company Xerox Corporation has signed a deal with SuperDerivatives to use the UK-based forex technology firm’s FX option benchmark pricing system in Xerox Mexicana, its Mexican subsidiary.
Merrill Lynch reports record quarter
NEW YORK -- Merrill Lynch’s drive to become a major force in the FX industry appears to be bearing fruit, according to its third-quarter results.
Alternative hedging for European exporters
European exporters could use major currencies’ volatility and liquidity to manage euro appreciation against emerging markets currencies, says Christine Lefort, global head of the structuring and marketing desk at Credit Agricole Indosuez in Paris
Dollar weakness to continue into 2004
Dollar weakness can be expected for many months to come and could continue even longer than first anticipated, says Michael Rosenberg, global head of FX research at Deutsche Bank in New York
‘Extendible forward plus strategy’ for corporates with sterling exposures
Barclays Capital’s senior FX structurer, Ben McMillan, suggests an ‘extendible forward plus’ strategy to enable a corporate with a stream of sterling receipts to lock in an enhanced minimum cable rate but participate in any further moves to the upside
MoF/BoJ re-enter FX market
The continuing weak economy and the growth differential between the US and Japan will become more pronounced over the course of this month, allowing the dollar/yen to regain the 115 level, say FX strategists Lauren Germain (right) and Uwe Parpart at Bank…
Philippines SEC drafts FX reporting guidelines
PHILIPPINES -- The Philippines’ Securities and Exchange Commission (SEC) last week announced draft guidelines on the preparation of foreign currency-denominated financial statements for corporations in the country.
