Mecklai graph of the day: Will SNB and BOJ act?
Mecklai graph of the day - The Federal Reserve hinting at QE3 and pledging to keep rates on hold at least until late-2014, Dollar has lost the appeal against its G7 basket.
January 31, 2012 / 16:50 IST
Mecklai graph of the day - Will SNB and BOJ act?
With worries over Euro zone intensifying, demand for safe haven currencies have started to rise since the past few sessions. However, with the Federal Reserve hinting at QE3 and pledging to keep rates on hold at least until late-2014, Dollar has lost the appeal against its G7 basket. This in turn has forced traders to find refuge amongst other safe haven currencies, amongst which Swiss Franc and Japanese Yen have attracted strong demand.This in turn has seen EURCHF and USDJPY slide quite sharply since the past few days, inching back towards their lowest levels since the recent respective intervention. Any further decline amongst these two currency pairs is likely to mount severe pressure on the respective central banks (SNB & BOJ) to consider intervening in the FX markets.Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.To read the full report click on the attachment 
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