Currencies

Dollar, Yen Advance as Rate Increase, Drop in Dow Damp Appetite for Risk The dollar and the yen rose against most major counterparts as India unexpectedly raised interest rates and the Dow Jones Industrial Average fell for the first time in nine days, damping demand for assets linked to growth.

Roach Says `Take Out the Baseball Bat' on Krugman Over His Stance on Yuan Morgan Stanley Asia Chairman Stephen Roach said that Paul Krugman’s call to push China to allow a stronger yuan is “very bad” advice and that increased Chinese spending is a better way of reducing trade imbalances.

Fed May Increase Discount Rate Before Next Policy Meeting, Economists Say The Federal Reserve may increase the discount rate, charged on direct loans to banks, before the next meeting of the Federal Open Market Committee on April 28, economists said.

Dollar May Drop Versus Yen on Japan's Holiday `Jinx,' Credit Agricole Says The dollar may drop against the yen on speculation currency volatility will jump as Japan’s financial markets close for a national holiday on March 22, according to Credit Agricole CIB.

Canadian Dollar Gains For Third Consecutive Week on Inflation, Rate Bets The Canadian dollar posted its third consecutive weekly gain amid speculation the Bank of Canada will raise interest rates before the Federal Reserve, increasing the appeal of the nation’s assets.

New Canada Dollar Trading Range May Maintain Currency's Strength, BMO Says Canada’s dollar may have entered a new trading range that would limit weakening against its U.S. counterpart, Bank of Montreal said.

Mexico's Peso Falls as Government May Buy More Dollars to Boost Reserves Mexico’s peso fell for a second day after the Finance Ministry yesterday said it may buy more dollars in the foreign-exchange market to increase reserves.

Pound Declines as Sentance Sees Risk of Double-Dip Recession in Britain The pound fell versus the dollar and euro after Bank of England policy maker Andrew Sentance said Britain may return to recession, stirring speculation interest rates will stay at a record low.

Swiss Franc Strengthens for a Sixth Day as SNB Seen Ending Currency Policy The Swiss franc strengthened against the euro for a sixth day, its longest run of gains since December 2008, on speculation the central bank is abandoning a policy of curbing the currency’s appreciation.