* New inflation or price-level targets still options
* BoC to study its role in securing financial stability
* Must be cautious, price stability will not be sacrificed
The U.S. dollar pared losses against the yen on Tuesday after the Nikkei business daily reported the Bank of Japan is considering additional steps to loosen monetary policy.
The dollar extended declines versus the Japanese yen on Tuesday after a report showed sales of previously owned U.S. homes dropped more steeply than expected in July.
Chile's peso is in line with longer-term fundamentals in real terms but the central bank can intervene in exceptional circumstances and does not rule out using the tools at its disposal, Central Bank President Jose De Gregorio said on Tuesday.
Oil prices fell below $72 a barrel on Tuesday, down for a fifth day after weak U.S. economic data spread gloom about the ability of top consumer the United States to work through record stocks.
The yen rose to a 15-year high against the dollar and a nine-year peak versus the euro on Tuesday amid fears the global economy is slowing, testing Japanese authorities' resolve to stem the currency's climb.
World's largest cooking oil consumer China said the country needs to step up agricultural innovation, including development of its own GM varieties, in response to climate change and to reduce reliance on foreign technologies.
Worst floods in Pakistan's recent history hit hard on the world's fourth largest cotton producer as it is likely to lost more than 15% of 2010-11 cotton harvest. According to International Cotton Advisory Committee (ICAC), cotton output in Pakistan now looked likely to come in at 1.9m tones, some 300,000 tones less than originally expected.
Riddhi Siddhi Bullions, India's one of the largest importers of gold, said on Tuesday it will sell five tons of gold coin in the country during the forth coming festival season, reported PTI.
Global rice prices are expected to rise by 6% to 7% this month or early next as foreign demand increases amid lower supply due to climate change. According to Thai Rice Exporters Association, foreign purchase orders have already resumed, and a flood of orders is anticipated next month to serve the many year-end festivals.
The hot news now is the BHP Billiton's unsolicited offer to buy Canadian fertiliser company, PotashCorp for $40 bn and PotashCorp taking alternative measures to block the bid. It is not yet clear why fertiliser companies have suddenly become hot favourites for acquisitions and mergers.
World wheat prices continued to climb as drought stricken Russia reported a further decline in yields from its grain harvest while import orders are on the rise. Russia's agriculture ministry said the country had harvested 40.3m tonnes of grain by bunker weight as of August 19, 38% less than a year ago. Bunker weight is typically about 7-8% higher than the clean weight used.
It is the time for mergers and acquisitions in the mining sector. After the recent copper miner Vedanta's takeover of Cairn India, now two gold mining majors in Australia announced their merger on Tuesday. According media reports, Australian gold miner Newcrest bought rival Lihir Gold with the deal creating the fourth largest group in the sector.
The euro hit a nine-year low against the yen on Tuesday as the loss of key technical support led speculators to short the currency in the hope of forcing stop-loss sales against both the yen and the dollar.
Global oil prices dropped below $73 a barrel in Asian trade Tuesday mainly after the dollar gained strength amid weak economic trends. Light sweet crude for October delivery was seen trading at $72.75 a barrel at 11.30 a.m Singapore time while Brent crude for October was at $73.28 a barrel in London.
Gold prices continued its southern journey in Asian trade Tuesday mainly on a strong dollar and weak equities that prompted investor's to sell the yellow metal.
Gold for immediate delivery was seen trading at $1220.54 an ounce at 12.00 noon Singapore time while U.S. gold futures for December delivery was at $1,222.4 an ounce on the comex division of Nymex.
This morning the AUD is fairly unchanged from the levels traded yesterday, currently trading around USD0.8900.
Yesterday's knee jerk reaction to a hung parliament saw the Aussie initially tumble almost a cent from Friday's close to exchange around 0.8850 in early Monday morning trade
The euro edged lower on Monday, hurt by concerns over the euro zone economy and prospects of loose monetary policy until year-end, leading investors to bet against the single currency.
Currency speculators extended euro short positions in the week ended Aug. 17, the Commodity Futures Trading Commission said on Friday, as focus shifted back to the euro zone and away from the U.S. economy.
The onset of the festive season in the Indian subcontinents has left India's jewellery makers bewildered as the demand for the yellow metal did not match the expectations of the bullion marketers, who believed jewellery buying during festivities to shoot up despite peaking up prices.
The upbeat kharif sowing statistics in India is likely to moderate the dependence on imported oil in the current year.
The data from the Ministry of Agriculture informed that the area under kharif oilseeds crop as on 19th August 2010 shows an increase of about 4 lakh hectares during the week and is reported at 161.40 compared to 153.19 lakh tonnes at the same time of the last year.
Oil prices rebounded in the early trades today, gaining as much as 0.7% at $74 per barrel drifting at a six-week low with dollar getting weaker on the back of raising US economic concerns.
The firmness in the Chinese stock markets also fuelled prices. The US crude for delivery in October rose as much as 48 cents, or 0.7 percent, to $74.30 a barrel on the New York Mercantile Exchange, and was at $74.17 at Singapore, while October ICE Brent gained 36 US cents to $74.62.
Gold prices held steady near $1,230 an ounce in Europe on Monday as uncertainty over the outlook for the global economy continued to support investment in the precious metal as a safe store of value.
Spot gold was bid at $1,226.60 an ounce at 0939 GMT (5:39 a.m. EDT), against $1,226.95 late in New York on Friday. U.S. gold futures for December delivery eased 90 cents to $1,227.90.
Oil rebounded to top $74 a barrel on Monday on a weaker dollar, but prices stayed close to last week's six-week lows on bulging U.S. inventories and a lack of hurricane activity in the Gulf of Mexico.
The market gained support from the weaker U.S. dollar, which makes oil cheaper for holders of other currencies .DXY, and from a firmer start to trading by European equities.
The euro stayed under broad pressure on Monday, hurt by concerns over the euro zone economy which have seen short positions in the single currency extended.
The Australian dollar was dented by political uncertainty after an inconclusive general election.
Japanese Prime Minister Naoto Kan and Bank of Japan Governor Masaaki Shirakawa discussed the yen and agreed to work closely in a phone conversation on Monday, but Kan did not ask the central bank to make any monetary policy changes.
Oil rebounded as much as 0.7 percent to top $74 on Monday on a weaker dollar, but prices stayed close to last week's six-week lows on a combination of lackluster economic indicators, rising risk aversion and a lack of hurricane activity in the Gulf of Mexico.
The U.S. dollar held steady on Monday, retaining most of the gains it made late last week when growing worries about the global economy prompted investors to park funds in the world's most liquid currency, while the Australian dollar slid on political uncertainty.
Gold regained strength on Monday as bargain hunters resurfaced after prices dropped slightly in the previous session, while demand from investors was likely to offset gains in the U.S. dollar.
Recent poor data from the United States pointed to a faltering economy, and some investors also ditched the euro on worries of more economic weakness ahead in the euro zone.
Crude oil prices continued their downward spiral during the week as new data confirmed that U.S. economic growth is slowing. The benchmark West Texas Intermediate contract settled 2.6% lower for the week on Friday, at $73.46 a barrel compared to the $75.39 close a week ago, itself a decline of 7% from the previous week.
