By Charlotte Cooper
TOKYO, Feb 17 (Reuters) - The euro fell to its lowest in more than two months against the dollar and tumbled against the yen on Tuesday, pressured by concerns about recession in eastern Europe and the knock-on effect on European banks.
Credit rating agency Moody's said the recession in emerging Europe was likely to be more severe than elsewhere and would put financial strength ratings of local banks and their Western parents under pressure, fuelling simmering investor jitters about the region.
"There's a lot of focus on this in Asia. We're seeing that develop into pressure on the euro," said Mitul Kotecha, global head of FX strategy at Calyon in Hong Kong.
"It's not new news, but it seems to be intensifying as a focus for Europe and the European institutions."
Moody's said the combination of higher provisions for bad debt, the rise in bank borrowing costs and falling currencies would weigh on banks' profitability and erode their capital base.
Western European banks led by UniCredit (CRDI.MI), Erste Group Bank (ERST.VI), Raiffeisen International (RIBH.VI) and Societe Generale (SOGN.PA) have bought up most of emerging Europe's banking sector in recent years to tap the rampant credit growth that fuelled the region's boom.
U.S. markets were closed for a holiday on Monday, when the euro lost about half a percent against the dollar and 0.8 percent against the yen as European equities fell.
Traders said a sudden bout of heavy selling forced the euro lower on Tuesday, triggering a series of sell orders and sending it down more than 1 percent to $1.2645 , its lowest since early December on trading platform EBS.
The euro fell 0.5 percent to 116.89 yen .
RISK JITTERS
The European currency was also under pressure from growing expectations for a deeper cut in interest rates by the European Central Bank in March. Many now expect rates to fall to a record low of 1.5 percent.
"So there are many reasons to point out the weakness of the euro," said Masafumi Yamamoto, head of FX strategy in Japan at Royal Bank of Scotland. Continued...
[snip]
Rollin’ Rollin’ Rollin’
Keep movin’, movin’, movin’,
Though they’re disapprovin’,
Keep them doggies movin’ Rawhide!
Don’t try to understand ‘em,
Just rope and throw and grab ‘em,
Soon we’ll be living high and wide.
Boy my heart’s calculatin’
My true love will be waitin’, be waiting at the end of my ride.
Move ‘em on, head ‘em up,
Head ‘em up, move ‘em out,
Move ‘em on, head ‘em out Rawhide!
Set ‘em out, ride ‘em in
Ride ‘em in, let ‘em out,
Cut ‘em out, ride ‘em in Rawhide.
Full Lyrics
Rollin’, rollin’, rollin’
Rollin’, rollin’, rollin’
Rollin’, rollin’, rollin’
Rollin’, rollin’, rollin’
Rawhide!
Rollin’, rollin’, rollin’
Though the streams are swollen
Keep them dogies rollin’
Rawhide!
Rain and wind and weather
Hell-bent for leather
Wishin’ my gal was by my side.
All the things I’m missin’,
Good vittles, love, and kissin’,
Are waiting at the end of my ride
CHORUS
Move ‘em on, head ‘em up
Head ‘em up, move ‘em on
Move ‘em on, head ‘em up
Rawhide
Count ‘em out, ride ‘em in,
Ride ‘em in, count ‘em out,
Count ‘em out, ride ‘em in
Rawhide!
Keep movin’, movin’, movin’
Though they’re disapprovin’
Keep them dogies movin’
Rawhide!
Don’t try to understand ‘em
Just rope, throw, and brand ‘em
Soon we’ll be living high and wide.
My hearts calculatin’
My true love will be waitin’,
Be waitin’ at the end of my ride.
Rawhide!
Rawhide!
Hysteria \Hys*te"ri*a\, n. [NL.: cf. F. hyst['e]rie. See
Hysteric.] (Med.)
A nervous affection, occurring almost exclusively in women,
in which the emotional and reflex excitability is
exaggerated, and the will power correspondingly diminished,
so that the patient loses control over the emotions, becomes
the victim of imaginary sensations, and often falls into
paroxism or fits.
[1913 Webster]
Note: The chief symptoms are convulsive, tossing movements of
the limbs and head, uncontrollable crying and laughing,
and a choking sensation as if a ball were lodged in the
throat. The affection presents the most varied
symptoms, often simulating those of the gravest
diseases, but generally curable by mental treatment
alone. Hysteric
you can watch current trading on cnbc.com . Doesn’t look too bad at this point.
Ping!
Oh shit... here we go, this is gonna get rough. I wonder if this is when they propose a new Global currency and ram it down our throats?
American In Tokyo;
Ping.
Possible coordinated Russian (Soviet sphere)/Chinese/Latin American/Iranian interference??? I think so
Also of interest: http://www.thecomingdepression.blogspot.com/
OK-now I’m really worried. What does this mean?
It is more than a currency issue. I found this link posted on Karl’s forum. It includes a chart video, takes a few minutes, but helps to explain this somewhat. It is a different web site. Hope it is helpful.
bump for later read.
http://www.bloomberg.com/?b=0&Intro=intro3
Stocks Drop Around Globe, Led by Banks, as Euro Declines, Treasuries Rise
We have an open financial system designed for basically honest people to trade. Might be time to put up a metaphorical firewall...
I noticed this last night. Gold and silver spot prices up big, and dollar up big at the same time, which is somewhat unusual.
The update on the article suggests that the violent action was contained. So this is more of a heads-up or warning of what could happen than an actual catastrophe.
But the Dow ain’t doin’ too good this morning, is it? Obviously Hussein’s Porculus plan is not being well received.