St. Louis Federal Reserve Bank President James Bullard said the risk of deflation in the United States has risen somewhat compared with the beginning of this year, the Nikkei newspaper reported.
Federal Reserve officials clashed on Thursday over whether the central bank should be more aggressive in supporting the stumbling economy and one said the Fed's current policy may be contributing to worryingly low levels of inflation.
The Federal Reserve should consider buying more Treasury securities, instead of promising an extended period of low rates to support recovery, should inflation drift lower, a top Fed official said.
The Aussie's three-week ascent towards US90.50 came to an abrupt halt yesterday immediately after the release of the much-anticipated June quarter inflation data.
The dollar fell versus the Japanese yen on Wednesday as a weaker-than-expected reading on new orders for U.S. durable goods added to fears about the U.S. economic outlook.
Demand for the dollar also fell against the euro as investors awaited for more supportive news for the euro, which rose above $1.30 but has been stuck in a range recently.
The euro struck a two-month high against the yen and stayed within reach of an 11-week high against the dollar on Wednesday, as markets stayed in risk-on mode on robust European bank earnings and solid economic data.
The euro hovered below a key level against the dollar on Wednesday, dented by profit-taking after it hit an 11-week high, while the Australian dollar fell as inflation data pared the chances of an interest rate rise next week.
The euro slipped below a key level against the dollar on Wednesday, dented by profit-taking after it hit an 11-week high, while the Australian dollar fell as inflation data pared the chances of an interest rate rise next week.
An increase in the Australian Conference Board leading index from 0.1% to 0.3% during the month of May added some underlying support to the Aussie dollar in Asia yesterday as it held firm above the 90 cent handle etching out gains to enter offshore exchange at 0.9025.
The euro hit an 11-week high against the dollar and a seven-week high against the yen on Tuesday as solid bank earnings lifted equities and encouraged investors to take on more risk.
Strong earnings from Swiss bank UBS (UBSN.VX) helped lift European shares .FTEU3, with banking stocks .SX7P leading the gains and supporting the market's relief over the results of last week's European bank stress tests.
Gold held below $1,185 an ounce in Europe on Tuesday, supported by physical demand after this month's slip and a softer dollar, but with a dip in holdings of the largest gold exchange-traded fund undermining sentiment.
Overnight we saw the AUD break through USD0.9000 and this morning it is currently trading comfortably above this level.
Japan's government needs to weaken the yen and undertake an expansionary fiscal policy to beat deflation, the leader of Japan's Your Party, a small opposition party that made strides in an upper house election, said on Monday.
Britain's economy grew almost twice as fast as expected in the second quarter of this year propelled by a sharp pick-up in services and the biggest rise in construction in almost 50 years.
The Federal Reserve stands ready to ease monetary policy further if the budding U.S. economic recovery withers, Fed Chairman Ben Bernanke said on Wednesday, describing the outlook as unusually uncertain.
Federal Reserve Chairman Ben Bernanke said on Wednesday the U.S. economy faces unusually uncertain prospects, and that the central bank was ready to take further steps to bolster growth if needed.
Gold prices have fallen sharply from all-time high of $1265 on June 21st on reassessment of US economic prospects by some gold traders and investors, and an abatement in perceived European sovereign risk, accoridng to Jeffrey Nichols, Senior Economic Advisor to Rosland Capital. However, he has maintained a bullish view on gold on loss of confidence in dollar and inflation.
The Australian Dollar has opened higher after the Reserve Bank of Australia (RBA) said the next rate movement was all but dependent on official inflation data due next week.
How much would the U.S. economy have to weaken for the Federal Reserve to try to push borrowing costs even lower?
European governments must press ahead with deficit cuts to restore investor confidence even if it means economic growth suffers, European Central Bank Governing Council member Christian Noyer said on Monday.
Gold eased in Asia on Monday after see-sawing most of the day as selling on low inflation signals gave way to safe-haven buying on concern over Hungary's debt crisis and a cut to Ireland's sovereign rating.
But by late afternoon, bearish sentiment had again gripped the sector, sending bullion down by more than $2 an ounce.
Gold steadied in Asia on Monday after early selling on low inflation signals gave way to fresh concerns over Hungary's ability to pay its debts prompted safe haven buying.
But longer term, the firmness in bullion is not supported by technical analysis, which suggests gold is ready to ease further to lows last seen in late May of $1,175 per ounce.
