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Tuesday, October 02, 2007

News You Can Use for Tuesday

New Calls to Abandon Dollar Peg The US interest rate cut has revived a fierce debate on whether the Gulf states should keep their currencies pegged to the dollar and bear the crunch of high inflation ... “The US and Gulf economies are now going in opposite directions. Losses incurred by Gulf economies will increase as long as their currencies continue to be pegged to the dollar,” added Dakkak.

Details on the cost of the credit crisis emerging
Slowly but surely, financial firms are 'fessing up about the cost of the credit crisis. In fact, two major global banks -- UBS AG and Citigroup -- just weighed in with details on their exposure.

Fed Fails to Restore Confidence in Credit Markets, Pimco, TIAA-CREF Assert As far as the world's biggest bond investors are concerned, the Federal Reserve is failing to restore confidence in the U.S. credit markets.

Gold Declines Most in Six Weeks in London as Dollar Rebounds Against Euro Gold fell the most in six weeks in London on speculation a rebound in the dollar will slow growth in investor demand for the precious metal.

Citigroup Says Dollar to Fall as Asian Central Banks Diversify Reserves The dollar will weaken as Asian central banks increasingly invest foreign-exchange reserves away from the U.S. currency, said Gabriel de Kock, chief currency economist at Citigroup Global Markets Inc.

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