currency exchange

Currency exchange has existed since ancient times when travelling from one state to another traders and ordinary people needed to convert one type of coins into the other. At present days we have several levels of money exchange starting from an ATM and ending with forex market. However, real cash is not the only currency we need because in the world of rapidly developing ecommerce people use electronic currencies which can also be converted in multiple directions: an ecurrency can be exchanged into real money or into another ecurrency unit.

World’s leading banks involved in currency trading are trying to regain lost ground in the forex market through the consolidated effort to launch a banks-only dealing system, according to the report by Wall Street Journal, who cited unnamed sources familiar with the case.

It is the major move taken by leading banks to regain lost ground since access to EBS, the largest forex dealing system, was opened to hedge funds and other non-banking financial players like high frequency traders in 2005, the Journal said. EBS is owned by Icap PLC (IAP.L), the interdealer broker.

The largest non-bank foreign exchange currency provider Travelex announced this week the launch of the first in the US prepaid foreign “currency cards” available in Euros and British Pounds that utilizes chip & PIN technology.

During early Friday deals the euro declined against its major counterparts in New York. At 7:35 am ET, the euro dropped to 1.2778 versus the greenback, compared to yesterday's close of 1.2830. This set a lowest point for the pair since July 22, 2010.

Against the British pound, the euro plunged further in today's New York morning and fell to 0.8205 by about 7:35 am ET. This set a new multi-week low for the euro. The euro-pound pair was worth 0.8206 at yesterday's close.

The yen strengthened versus the US dollar on suppositions that increasing demands from politicians to weaken the currency may be ignored by the Bank of Japan.

On concerns that European nations may struggle to finance their debts boosted demand for the currency as a haven the Swiss franc jumped up to its strongest level in about two weeks against the euro.

During early trades the UK pound continued its downtrend against most majors as recent economic data suggested a slower economic recovery in the region. Traders are also cautious ahead of the FOMC rate decision. The U.S. Federal Open Market Committee is due to announce its interest rate decision at 2:15 pm ET. Policymakers are expected to keep rates near zero for "an extended period," and signal concerns about the pace of the economic recovery.

The Japanese yen gained for the first time in three days against the euro. The US dollar also strengthened on concerns that the global economic recovery is stalling boosted demand for safer assets.

The yen rose against all major counterparts after UK reports revealed that housing prices unexpectedly declined in July and before US reports about worker productivity growth. The Bank of Japan kept its benchmark overnight rate unchanged at 0.1 percent and maintained its credit programs for lenders by a unanimous vote.

An online Danish investment bank Saxo Bank has announced the introduction of new tools to allow customers to better trace forex markets. The new Forex Content Sharing Program features a suite of freshly-designed Forex widgets that bring real-time FX prices, charts and commentary, to any website or blog.

 A Senior Economics Reporter at the CNBC Steve Liesman made his proposals on how the US administration can address the problem of declining dollar. He noted that it is only rhetoric that has been done since 2001 by the four consecutive Treasury secretaries on "a strong dollar policy" while in fact nothing of what have been said works in practice. Thus, he suggests three ways for the Federal Reserve and the US Treasury to stop the US currency from decline.

 On Monday Asian deals the euro increased against U.S. and Japanese currencies on optimistic reports coming from Europe. Meantime, the European single currency dropped to a new multi-week low against the pound while losing its ground against the Swiss franc.

The euro, which closed last week's trading at 1.4848 against the dollar soared to a 2-week high of 1.4987 in early deals on Monday. The next upside target level for the euro-dollar pair is seen at 1.506.

 The euro increased against the dollar and the Swiss franc as the European stocks jumped today ahead of a key U.S. employment report. Meanwhile, the euro recovered its Asian session's loss against the pound and the yen.

The euro strengthened against the dollar in early deals on Friday. Currently, the euro-dollar pair is worth 1.4906, up from Thursday's close of 1.4871. If the pair climbs further, it may target the 1.4919 level. 

 During European deals on Thursday the euro showed mixed trading against major counterparts as investors are awaiting the decision of the European Central Bank on the interest rates.

The euro bounced between 1.5094 and 1.5107 against the Swiss franc in early deals on Thursday. The next downside and upside target levels for the euro-franc pair are seen around 1.5083 and 1.513, respectively. At yesterday's close, the pair was quoted at 1.5099.

 During Wednesday Asian trading the Japanese yen dropped against its major rivals after it showed strong trading.

The Japanese unit fell to 90.40 against the US dollar and 148.52 against the pound, from 90.06 and 147.86 respectively hit during today's early Asian session. The yen was worth 90.35 against the buck and 148.51 against the pound at Tuesday's New York session close.

 During early Tuesday deals the US dollar grew versus its major rivals while dropping against the yen.

The US currency edged up against its Swiss counterpart during Tuesday's early trading. The dollar-franc pair hit as high as 1.0238, compared to 1.0218 hit late Monday in New York. If the dollar climbs further, 1.03 is seen as the next upside target level.