The
dollar touched a nine-month high against the euro after the Federal
Reserve raised the discount rate charged to banks for direct loans for the
first time in more than three years.
The
Federal Reserve Board sent its most explicit signal yet that the emergency
supply of liquidity to financial markets is done and the most aggressive
monetary policy easing in its 96-year history will eventually reverse.
The
euro may fall to a 10-month low of $1.3091 after dropping below a key
support level, according to Bank of Tokyo Mitsubishi UFJ Ltd.
The
U.S. dollar will gain on bets the Federal Reserve will accelerate
increases in its target lending rate following an unexpected change in its
discount rate yesterday, Commonwealth Bank of Australia said.
The
cost of living in the U.S. probably rose in January,
pushed up by higher energy prices, economists said before a government
report today.
Forewarned
bankruptcies linked to infrastructure projects from Las Vegas to Harrisburg, Pennsylvania, may prove Warren Buffett’s conclusion that insuring municipal bonds is
a “dangerous business.”
Investors
pumped money into U.S., Japan and some emerging-market
equity funds as economic data added to evidence of a recovery in the world’s
largest economy, EPFR Global said.
The
European Union risks repeating Japan’s mistakes of the 1990s as it
helps Greece tackle the region’s biggest
budget deficit, said Jeremy Beckwith, chief investment officer of
Kleinwort Benson.
Bank
of England markets director Paul Fisher said monetary policy “strongly
supported” asset prices last year, and the central bank’s bond-purchase
program has bolstered demand for corporate debt.
News, data, references and commentaries compiled from Bloomberg, Reuters, yahoo, CNN, CBSMarketWatch, Fxstreet etc.
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