Forex Tidbits - Australia added liquidity to Market, Sentiment "fragile".

November 12, 2007 - Forex Economic News

Australia boosted liquidity in August

The Reserve Bank of Australia added liquidity to their currency market in August to help stabilize the Aussie dollar during a time of high volatility, the RBA disclosed today in its statement on Monetary Policy. The RBA boosted Australian dollars in order to counteract carry trade unwinding which featured investors selling off the Australian currency amid credit fears and that "these actions were designed to ensure that markets continued to function as normally as possible" and "as conditions subsequently improved, these injections of liquidity were gradually unwound." The RBA characterized the financial market sentiment as having improved since August but remains "fragile". Read the RBA statement here.

Global Currency No Longer?

Usually the belle of the ball, is the U.S. dollar becoming the ugly step-sister? Sebastian Mallaby of the WashingtonPost.com examines the dollar's standing and potential extinction as the global reserve currency and why other countries want a strong dollar.

Tags: Aussie, Australian dollar, carry trade, AUD, USD, RBA - - - - -Blog index