Occasionally, there is a need to obtain the exchange rate details of various currencies by dates, even if such dates are not recent dates.
Such requirements can stem from backdating of amount owned, to a pre-agreed exchange rate which is fixed during point-in-time. Therefore, it is useful for exchange rate calculators to function by date as well.
We have created just such a tool in our website which you can reference to Read the rest of this entry »
With the US Dollar on a nosedive in recent months, many forex traders holding on to the Indian Rupees are smiling. With an estimated 2.3 million Indian nationals living in various parts of the United States, there is always a strong exchange market for the Indian Rupee/ US Dollar currency pair.
Currently, 1 US Dollar trades at 44.20 Indian Rupees, or 1 Indian Rupee (INR) trades at 0.02262 US Dollar (USD).
In recent months, there is an estimated 10% increase in the remittance of US Dollar back to India. Most Indians residing in United States (and earning USD) realised that there is a possibility in the steep decrease in value of the greenback, resulting in some panic selling of the US Dollar for the Indian Rupee. The trend is likely to continue and the forex traders are now capping the release of the Indian Rupees, raking in big profits in the process. Likewise, remittance centers in Delhi, Lucknow, Mumbai, Chennai and Bangalore are sprouting up to compete against the growing pie in the INR/USD exchange rate market.
Even if the US Congress passes the debt ceiling of United States beyond the current USD14.3 trillion levels, confidence in the USD is already shaken. As such, the lure of the greenback is expected to weaken considerably Read the rest of this entry »
Now, with the US Dollar on the brink of a free-fall, attention are now shifted towards the Chinese RBM and the Euro as the next safe haven. Currently, 1 Euro trades at 9.2433 Chinese Yuan (RMN) or 1 RMB equates to 0.10818 Euro.
The Chinese RMB is especially tricky to trade due to the capital restrictions by the Chinese Central Bank (CCB) on forex controls. In addition, the Chinese RMB is generally pegged to the US Dollar – this possible with the estimated 1.1 trillion of US Dollar held as part of Chinese reserves. Thus, it would be prudent for most exchange rate traders to wait out on the outcome of US Congress – if the US debt ceiling can be raised beyond the current 14.3 trillion dollar limit.
Now, all eyes are aimed for the showdown talk between the US Congress and the US Senate, and the negotiations between the Republicans and the Democrats with both sides hoping for a deal which would appease votes. Major investment banks and hedge funds are drawing up their respective plan B should any deal fall through and the US Dollar and Treasury bonds are no longer a safe haven for parking aside liquid investments.
There has already been talk amongst forex traders that the Chinese Government is planning to peg the RMB against the Euro directly rather than against the US Dollar Read the rest of this entry »
With the US Dollar going on sale literally, many Europeans have now been monitoring the USD Euro exchange rate in anticipation of a future slide on the US Dollar, with the 2 Aug 2011 deadline looming for US Congress to pass the bill to raise its debt ceiling. Ironically, just 2 months back, the Euro is in a similar situation where finance ministers from the Eurozone struggles with approving a 114 billion loan deal to Greece.
The situation now makes forex trading tricky, as it is for even a common tourist deciding if he/she should actually start exchanging any USD/Euros. In the next few days, volatile fluctuations are expected for both the US Dollar as well as for the Euro – failure by the congress to approve raising the US debt ceiling will most likely see the US Dollar fall below 1 USD = 0.60 Euro levels. Currently, 1 USD trades at 0.69 Euro.
Conversely, while the USD will see a slight respite in currency depreciation should the congress approves on the elevated debt ceiling, any upside are likely to be very limited. Already, the US Dollar has slide against the Euro by some 3% in the past 4 months and the long term trend is likely to continue. Strategically, United States will likely push for future depreciation of the US Dollar to effectively lower the value of their debt against major currencies (including the Japanese Yen, Swiss Francs and the Chinese Renminbi). Thus, we forecast that should the congress Read the rest of this entry »
Often labelled as grossly de-valued, the Chinese Yuan (RBM) is tightly controlled by the Chinese Government to ensure China mainly their economic growth and stays competitive in the global market. In what many believe to be a zero-sum international market, most European nations as well as the United States believe that the devaluation is done at their expense, and as a result, clamoured for the Chinese Yuan to be floated against market forces.
It is clear that the Chinese Government does not have any intention of doing so and jeopadizing their competitiveness in the global market. Unfortunately, there is not much the Eurozone and United States can do, as the Chinese Yuan is sitting against the back of strong reserves held by the Chinese Government, largely in Gold and US Dollars. From a liquidity point of view, only 7 currencies are released for official spot trade with the Renminbi (RMB):
1. U.S. dollar (USD)
2. Euro (EUR)
3. Japanese Yen (JYP)
4. Hong Kong Dollar (HKD)
5. Sterling Pound
6. Malaysian Ringgit (MYR)
7. Russian Rouble
To ensure a more liberal float compared minimally against the Malaysian Ringgit, the Chinese Government need to allow at least 20 more currency pairs to be traded against the RMB in the forex spot market. In addition, there should be minimal government intervention with regards to the spot trades done on RMB.
It is widely expected that when the Chinese Yuan (RMB) is truly floated, the exchange rate of the RMB will be at least 51% higher than current value. This means that the 1 US Dollar should trade against 3.2 Chinese Yuan (RMB), or 1 Euro against 4.8 Chinese Yuan. When this will happens, you should finally see more Chinese tourists then students in your country.
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