Banks step in as US Dollar tumbles

Banks step in as dollar tumbles
Dollars
The dollar fell to a 14-month low against a basket of currencies

Asian central banks have intervened in the currency markets in an attempt to slow the slide of the US dollar.

Asian countries are worried about their export industries, which would be hurt by a weaker dollar.

Central banks in South Korea, Taiwan, the Philippines and Thailand have been buying the US currency, traders said.

As signs of economic recovery begin to emerge, traders have switched from the traditionally "safe" US dollar to buying other currencies.

A fresh wave of dollar-selling may have led to the banks' intervention.

The dollar fell to a 14-month low against a basket of currencies on Thursday.

Analysts believe that other countries have also intervened.

"It was reported earlier this morning that Russia was one of at least six central banks buying dollars," said Michael Woolfolk, senior currency strategist at the Bank of New York Mellon.

27 Bank Closures 2009 4months

27 Bank Closures total First Four months 2009

The list of Bank Failures and Assistance Transactions is updated through April 24, 2009.
April 2009

Michigan Heritage Bank, Farmington Hills, Michigan, with approximately $184.6 million in assets, was closed. Level One Bank, Farmington Hills, Michigan, has agreed to assume all deposits, excluding certain brokered deposits (approximately $151.7 million). (PR-58-2009)

American Southern Bank, Kennesaw, Georgia, with approximately $112.3 million in assets and approximately $104.3 in deposits was closed. Bank of North Georgia, Alpharetta, Georgia, has agreed to assume all non-brokered deposits. (PR-57-2009)

Great Basin Bank of Nevada, Elko, Nevada, with approximately $270.9 million in assets, was closed. Nevada State Bank, Las Vegas, Nevada, has agreed to assume all deposits (approximately $241.4 million). (PR-55-2009)

American Sterling Bank, Sugar Creek, Missouri, with approximately $181 million in assets was closed. Metcalf Bank, Lee's Summit, Missouri, has agreed to assume all deposits (approximately $171.9 million). (PR-54-2009)

New Frontier Bank, Greeley, Colorado, with approximately $2.0 billion in assets and approximately $1.5 billion in deposits was closed. Deposit Insurance National Bank of Greeley, Greeley, Colorado has agreed to assume the non-brokered insured deposits. (PR-53-2009)

Cape Fear Bank, Wilmington, North Carolina, with approximately $492 million in assets, was closed. First Federal Savings and Loan Association, Charleston, South Carolina, has agreed to assume all deposits (approximately $403 million). (PR-52-2009)
((http://www.fdic.gov/bank/historical/bank/index.html))

Max Keiser: Economic and Currency Destruction

Max Keiser predicts the destruction of the American Economy and the American Dollar. The American Economy is a Ponzi scheme with George Bush and "Financial Terrorist" Henry Paulson doing a controlled demolition. The bailout is only for their friends, bankruptcy is for their enemies.





http://www.accesstradingmgmt.com/index.html

US Dollar Strength/Gains

Dollar gains against rival currencies Friday October 31, 12:06 pm ET by Ben Rooney, CNNMoney.com staff writer
The U.S. dollar rose against its main trading partners Friday as investors took shelter in lower-yielding currencies at the end of a volatile month in global financial markets. The euro fell 1.4% to trade at $1.2725 from %1.2923 late Thursday in New York. Britain's pound was down 1.5% at $1.6196 from $1.6039. The dollar was up against the yen at ¥99.02 from ¥98.25. The greenback fell to an overnight low of ¥96.72 but regained ground after the country's central bank cut a key interest rate. In a widely anticipated move, the Bank of Japan lowered its benchmark interest rate. But wary investors in Japan were expecting a more aggressive cut and Japan's Nikkei index fell 5% despite the news.

Central banks worldwide stepped up efforts this week to forestall a global recession. The Federal Reserve cut its key interest rate Wednesday to 1% from 1.5% and announced plans to extend currency swaps to a number of central banks in emerging markets. European stocks were higher in afternoon trading following a rocky start. In the United States, shares were also trading higher despite dour economic data.

A report from the Commerce Department showed Friday that consumer spending declined 0.3% in September. That followed data released Thursday showing the nation's economy shrank in the third quarter. Currency strategists say Friday's trade could be volatile as money managers seek to balance portfolios at the end of one of the most difficult months in Wall Street's history.
"With equity markets down 15-20% over the past month and today the last day of October, today could see some ghoulish month-end rebalancing flows, making the session difficult to handicap," said Steve Malyon, currency analyst at Scotia Capital in Toronto.

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