| RMB hits new high against US dollar after breaking 7.8 mark
The value of the Renminbi (RMB) yuan against the U.S. dollar hit a new high on Monday with a central parity rate of 7.7938 yuan to one dollar, according to the Chinese Foreign Exchange Trade System. The new high follows a previous record of 7.7977 yuan to one dollar last Thursday, breaking the 7.8 mark for the first time. Monday's exchange rate also marked a new high of 0.99945 yuan per Hong Kong dollar. "The new appreciation of the RMB resulted from a temporary peak of personal foreign exchange settlements from overseas Chinese, such as students studying abroad, who remit money to relatives or friends in China as the traditional Spring Festival approaches," said Ye Yaoting, a forex analyst with the Bank of Communications. China's growing trade surplus and foreign exchange reserves had contributed to boosting the yuan's appreciation, Ye said.
State Street To Acquire Investors Financial Services For About ...
(RTTNews) - Monday morning, State Street Corp. (STT | charts | news | PowerRating), a Boston, Massachusetts-based provider of financial services to institutional investors, revealed that it would acquire Investors Financial Services Corp. (IFIN | charts | news | PowerRating), for approximately $4.5 billion in stock. The company said that the boards of directors of both companies approved the transaction, which is expected to close by the third quarter of 2007. The transaction is expected to be dilutive to State Street's operating earnings in 2007, and neutral to earnings in 2008, on an operating basis. In addition, the transaction is expected to be accretive to earnings in 2008 on a cash basis and accretive to operating earnings in 2009, based on anticipated pre-tax cost savings of about $345-$365 million, during the first two years following closing.
Forex - Dollar extends gains, G7 still guiding markets
SINGAPORE (XFN-ASIA) - The US dollar was stronger against the yen but steady against the euro, with the Japanese currency retreating amid growing signs G7 members are in disagreement on whether the currency will be discussed at this weekend's meeting. The key concern which has been providing the yen a lift in past sessions is whether the issue of the yen's sustained weakness will be brought up when the G7 meets in Essen Germany, starting Friday. Today, a senior official at Japan's Ministry of Finance said the yen will not be a major agenda item at the G7 meeting but will instead be part of routine discussions. "Arguments on the yen's situation won't be a main agenda at the coming G7 meeting," said the official, who declined to be identified. "By the way, it is natural for the G7 nations to have routine discussions on forex issues at the general meeting Saturday morning." The official's comments, coupled with remarks by US Treasury Secretary Henry Paulson and various media reports, appear to convince market players that Japan's position will prevail, keeping the yen out of the G7's official end-meeting communique.
Steinbrueck Eases Yen Stance, Says Exports Unaffected (Update1)
Feb. 9 (Bloomberg) -- German Finance Minister Peer Steinbrueck said the yen's decline hasn't hurt European exports, tempering his criticism of Japan's currency as the Group of Seven officials began meeting in Essen, Germany. Steinbrueck's comments indicate the G-7 will refrain from identifying the yen as a problem this weekend. U.S. Treasury Secretary Henry Paulson, who met with Steinbrueck today, reiterated his view that the currency is being set by markets and trading in line with Japan's economic fundamentals. European ministers, including Steinbrueck, placed the yen on the meeting's agenda, signaling concern the currency's slide to a record against the euro last month was at odds with the strength of Japan's economy and threatening the region's exports.
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