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1. Regulation and Oversight

The performance of dollar during Thursday trades was very mixed: it gained versus the yen, but at the end of the day came out with little gaining against the euro, because the stocks went up in the morning trades and then stalled during trading in the afternoon.

Risk-sensitive currencies were more popular on Thursday, therefore, the pound of sterling and the Canadian dollar both gained against the American dollar. Due to May Day holiday in many European countries, on Thursday the market was expecting weak trades on Friday, therefore having comparatively directionless trading session.

The dominating events, influencing the market situation today are the American gross domestic product (GDP) and the meeting of FOMC. It is considered that there is very little that the Federal Reserve of the US can do, besides loosening the monetary policy of the institution for a certain period, putting the interest rates at level of 0-0.25 percent and expanding the debt of the agency.

Mexican peso, as well as other currencies of Latin American countries, has been losing their value since Monday morning because of the rapidly spreading swine flu outbreak. This concern became so important in the past two days, that it pushed into the background all other economic and political issues, influencing currency rates.

The swine flu outbreak in Mexico during the weekend made majority of the foreign exchange market players go for purchasing of more safe currencies. The most popular in this range is the Japanese Yen, most likely because the country is isolated from the disease geographically.

As Japan is an island, it will be much easier for the country to keep the swine flu away from its coasts, and as for now, there are no signs or cases of swine flu in the country.

As it was announced on Saturday by the Chairman of Eurogroup, Jean-Claude Juncker, the Group of Seven is satisfied in general with the overall levels of currencies of the world, which is currently operating on the foreign exchange market. The main reason for this, as the Chairman said, is that the rates of currencies are staying in balance and correspond with the economic basics and reflect changes in economic positions of countries of the world.

It is very likely that International company Telmex SAB (TII) will report year-on-year net profit loss of 32% in the first quarter of 2009. The reason for such losses are the losses on US dollar foreign exchange and increase of tax costs for the company.

Telmex Internacianal is an international company, operating in Argentina, Brazil, Peru, Ecuador, Chile, Colombia, and is a company of its parent-company Telefonos de Mexico (TMX).

According to Abdul Ghaffar Chaudhry the acting president of Islamabad Chamber of Commerce and Industry the fact of the decreasing foreign exchange reserves led to new opportunities and the next actions of the government will surely get back the confidence of investors and other businessmen in the economy of the country.

Seoul shares experienced 8 percent fall thus reaching its lowest level since 2005. The fall was caused by the fears of global crisis that increased due to low US earnings and quite negative forecasts. For instance, the Korea Composite Stock Price Index decreased by 7.8 percent thus reached the lowest level since July 2005 and the Kosdaq market declined by 7.97 percent to its lowest level that was ever reached.

South Korea announced about its bank’s foreign exchange traffic up to $100 billion with the aim to support markets throughout the financial crisis. This decision was taken in cooperation of the country government with the central bank. They have also added that central bank will provide $30 billion in liquidity with the aim to support the banks and exporters of the country as well as to help small banks in obtaining loans from foreign exchange reserves. Furthermore all deals of the banks of the country with international institutions made in foreign exchange from October 2008 to June 2009 will be covered for a period of three years.

According to the announcement made by the officials of the central bank of the country the foreign exchange reserves of the China increased up to $1.905 trillion at the end of September. However the foreign exchange reserves of the country were also growing throughout the previous quarters of the year and came to the point of $377 billion. But this number shows us a certain gradual decrease in the rate of accumulation that became apparent after the financial crisis affected Chinese economy.

August 8 2008 witnessed the issue of the New Forex Regulations in China. This step was nothing but the response to the growth of the forex reserves of the country that came closely to the point of $2 trillion as well as to the increased foreign currency flow.

Nowadays the Reserve Bank of New Zealand is projecting a much smaller overplus in 2009. Analytics say it happens mostly because of a decrease in net investment income.

NEW YORK. A financial information website Market Watch reported that gold futures dropped for the first time in three sessions Tuesday, as a rising dollar pressured prices and prospects that the $700 billion rescue plan may be soon passed depressed safe-haven buying.