Euro tumbles in NY

NEW YORK: The euro tumbled to a two-year low against the dollar for a third consecutive session on Tuesday, pressured by weaker-than-expected German data, a day after Moody's warned of fallout from Europe�s debt crisis on the region's strongest economies.

Analysts said the euro looked poised to take out the key $1.20 area, but further losses could be limited as markets shift attention to a Federal Reserve meeting next week when policymakers will likely discuss the possibility of further stimulus for the US economy.

Manufacturing in Germany, the euro zone's biggest economy, contracted at its fastest pace in more than three years and its service sector also shrank. In France, factory activity fell at its fastest pace since May 2009.

The data came a day after Moody's revised its outlook for Germany, the Netherlands and Luxembourg to negative, warning that Europe's top-rated countries may have to increase support for indebted states such as Spain and Italy.

There's overall caution and concern that the stronger countries may not have either the willingness or the ability to help out the periphery,� said Vassili Serebriakov, senior currency strategist at Wells Fargo in New York.

The euro fell as low as $1.2040, its weakest level since June 2010, extending losses after some EU officials said Greece is unlikely to be able to pay what it owes and further debt restructuring is likely to be necessary. It was last at $1.2062, down 0.4 percent.

Inspectors from the European Commission, the European Central Bank and the International Monetary Fund returned to Athens on Tuesday and will complete their debt-sustainability analysis next month.

Against the yen, the euro lost 0.7 percent to 94.31 yen, having hit 94.09 yen, an 11-1/2-year low. The dollar lost 0.3 percent to 78.16 yen.

The euro also fell against higher-yielding currencies. It traded at A$1.1789 against the Australian dollar, near Monday's record low of A$1.1679, and at C$1.2319 versus the Canadian dollar, also near a record low.

Since the European Central Bank cut interest rates earlier this month, the euro has fallen heavily against a range of currencies as investors increasingly use it as a funding currency to purchase higher-yielding assets.

Losses in the currency also accelerated after Spanish bond yields jumped well above the 7 percent danger level this week, raising fears Madrid will need a full-scale sovereign bailout.

Attention could start to shift to Friday�s first reading of US second-quarter growth, analysts said. A weak number could boost expectations of another round of bond-buying, or QE3, from the US central bank and weigh on the dollar.

Indian rupee stays down

MUMBAI: The Indian rupee fell for a fourth successive session on Wednesday on growing worries of a government dithering despite mounting fiscal and economic challenges, although a late recovery in the euro helped offset most losses.

A senior oil ministry official told reporters on Wednesday a hike in fuel prices was unlikely before September, denting hopes the government would push for policy reforms in the window between presidential elections last week and the start of parliament's monsoon session in early August.

We are not seeing any concomitant measures by the government. Unless the economy does well, I do not see inflows sustaining, said M. Natarajan, head of treasury at Scotiabank in Mumbai.

The partially convertible rupee closed at 56.16/17 per dollar, as per the SBI closing rate, not far from its close of 56.12/13 on Tuesday.

Three-month offshore non-deliverable forward contracts were trading at 57.23, not far off the record low of 57.32 hit on June 22. The one-month contract was around 56.52.

The spot rupee had earlier fallen to as low of 56.44, its lowest level in nearly a month.

In the currency futures market, the most-traded near-month dollar-rupee contracts on the National Stock Exchange, the MCX-SX and United Stock Exchange all closed at around 56.19, with the total traded volume at around $5.8 billion.

Canada ,spy sold US, Australia, UK secrets

SYDNEY: A Canadian naval officer arrested this year for allegedly leaking secrets may also have compromised top level Australian, British and American intelligence, a report said Wednesday.

Jeffrey Delisle, a naval intelligence officer, was charged in Canada in January with communicating over the past five years �with a foreign entity, information that the government of Canada is taking measures to safeguard.

Canadian reports said Ottawa expelled four Russian diplomats in the aftermath of Delisle's arrest, although Moscow denied this.

On Wednesday the Sydney Morning Herald, citing Australian security sources, said Delisle also allegedly sold to Moscow signals intelligence  information gathered by the interception of radio and radar signals collected by the United States, Britain, Australia and New Zealand.

It said much of the information was more highly classified than the disclosures attributed to US Private Bradley Manning, who is accused of releasing a vast cache of classified files to whistleblowing website WikiLeaks.

The newspaper said Delisle was the subject of high-level consultations between the Australian and Canadian governments and was discussed at a secret international conference in New Zealand earlier this year.

An Australian security source quoted by the newspaper said Delisle's access was apparently very wide and that Australian reporting was inevitably compromised.

The signals intelligence community is very close, we share our intelligence overwhelmingly with the US, UK and Canada, a former Australian Defence Signals Directorate officer said.

An Australian Defence Department spokeswoman said the government did not comment on intelligence matters.

However, the Australian government takes national security very seriously and is continually reviewing and strengthening policies, practices and techniques to ensure Australia's national security, she told AFP.

New Zealand Prime Minister John Key refused to confirm whether the intelligence conference took place and said he could not discuss matters of national security.

I m not in a position to be able to, or want to, comment on our national security, he told reporters.

These things are sometimes better left unsaid.

Delisle's offences allegedly occurred in the Canadian capital Ottawa, Halifax and in towns in Ontario and Nova Scotia provinces, court documents said.

He has been charged under Canada's Security of Information Act, with a conviction carrying a maximum penalty of life in prison.

Pakistan Govt given two more weeks to write letter

KHUDAYAR MOHLA

ISLAMABAD: The Sup-reme Court on Wednesday gave the government two more weeks to write a letter to Swiss authorities to revive graft cases against President Asif Ali Zardari.

A five-member bench, led by Justice Asif Saeed Khan Khosa and also comprising Justice Ejaz Afzal, Justice Ijaz Ahmed Chaudhry, Justice Gulzar Ahmed and Justice Muhammad Athar Saeed resumed the hearing of the NRO judgment implementation case.

During the course of hearing, Attorney General for Pakistan (AGP) Irfan Qadir assured the court that serious efforts would be made to resolve the ongoing crisis. The court had issued directives to the Prime Minister on July 12 to comply with the court�s order in relation to NRO judgment implementation by July 25.

Through the AGP, the federation contended in its reply on July 24, 2012, that the incumbent Prime Minister could comply with the court orders on NRO Judgment para 178 only if he was advised by the federal cabinet to write the letter to Swiss authorities.

The bench in its short order ruled that we trust that to bridge the gap between the two institutions is not impossible and we would like to bring about the solution to the pending issue by August 8, 2012

Earlier the AGP contended that no officer of the NAB was answerable to the Supreme Court, adding that the court should not take upon itself the responsibilities and functions of the executive and the legislature.

In my view every institution requires the same respect as does the judiciary, the AGP said and requested Justice Khosa to recuse himself from the present case.

Justice Khosa, however, observed that the court had taken a constitutional measure in its verdict while a politician was trained to make adjustments or compromises.

Your stance is that the President enjoys immunity under international law  Asif Ali Zardari is also our President and we have great respect and honour for the office of the President, Justice Khosa said while addressing the AGP.

He also stated that if the AGP wanted the bench to write a letter to Swiss authorities stipulating immunity for the president then the bench would do so but only after a letter to Swiss authorities by the Prime Minister to reopen graft cases against the President had been written.

Justice Khosa further remarked that the judiciary did not want to derail the system, a person or an office but wanted the principal law officer to play his due role towards the resolution of the issue.

During the course of proceedings, NAB Prosecutor General KK Agha informed the court about the progress made in the cases of Adnan Khwaja, Malik Qayum and Ahmed Riaz Sheikh. Agha apprised the bench that investigation against the out-of-rules appointment of Adnan Khwaja as OGDCL chief had been completed and the matter was now in prosecution phase, adding that the NAB Board would further decide upon the matter in the next 2-3 weeks.

About Ahmed Riaz Sheikh, the bench was informed that a decision had been made to file references against three persons within three weeks after the conclusion of a probe. He further said that Malik Qayyum was under treatment abroad but he had been cooperating with the NAB in the investigation. Dr Abdul Basit, the counsel for Ahmed Riaz Sheikh and Adnan A Khawaja, contended that NAB had decided to file references against his clients but pleaded that the court should stop monitoring of his clients activities.

The bench adjourned hearing of the case till Aug 8.

Lahore Grain Market Rates 24/07/2012

RECORDER REPORT

LAHORE: Grain and other commodity rates in rupees on Akbari Mandi on Tuesday (July 24, 2012).

====================================

                          Per 100 kg

====================================

Sugar                      5100-5180

Gur                        5800-6000

Shakar                     6500-7000

Ghee (16 kg)               2510-2730

Almond (Kaghzi)          28000-40000

Almond (Simple)          10500-15000

Sogi                     20000-25000

Dry Date                  8000-15000

Chilli (Sabat)           25000-40000

Chilli (Pissi)           16000-26000

Turmeric                 10000-12000

Darchini (large)               18000

Mong (Sabat)               9000-9500

Dal Mong (Chilka)         8000-10000

Dal Mong (Washed)          8500-9500

Dal Mash (Sabat)          9000-11000

Dal Mash (Chilka)        10000-11600

Dal Mash (Washed)        10500-13000

Dal Masoor (Local)         8500-9000

Dal Masoor (import)        6500-7500

Masoor (salam)             6500-8000

Gram White                9000-10500

Gram Black                8800-10000

Dal Chana (Thin)           9700-9800

Dal Chana (Thick)        10000-10200

White Kidney Beans Lobia   9000-9500

Red Kidney Beans Lobia   10000-12500

------------------------------------

Rice                    (per 100 kg)

------------------------------------

Basmati Super (Old)      10000-11000

Basmati Super (new)       9000-10000

Rice Basmati (386)         6000-6300

Basmati broken             4500-5100

------------------------------------

Tea                       (per 1 kg)

------------------------------------

Tea (Black)                  350-440

Tea (Green)                  600-900

====================================

Euro falls vs dollar in London

LONDON: The euro fell against the dollar on Tuesday after weak euro zone data fuelled concerns about slowing growth, even in Europes largest economies, and it looked likely to extend losses on concerns Spain may need a full bailout.

Germanys purchasing managers index showed both the manufacturing and services sector shrinking more than expected in July, while the equivalent French manufacturing survey was also well below forecasts.

The data came a day after Moodys changed its outlook for Germany, the Netherlands and Luxembourg to negative, warning that Europes top-rated countries may have to increase support for indebted states such as Spain and Italy.

Analysts said worries that more Spanish regions will follow Valencia and request financial aid from Madrid would keep Spanish bond yields high and encourage investors to sell the single currency.

Spain was forced to pay higher yields on short-term debt at a sale on Tuesday while Spanish borrowing costs remained at levels which analysts say are unsustainable in the long term.

There is definitely a risk the euro could go below $1.20 ... This is not just about worries about Spain. We are also in an environment where the global growth picture is faltering, said Arne Lohmann Rasmussen, head of currency research at Danske Bank in Copenhagen.

The euro was down 0.15 percent at $1.2094, not far from a two-year low of $1.2067 touched on Monday as concerns about Spains debt problems intensified.

It gained only a brief lift earlier after data showed Chinas manufacturing output grew at its fastest pace in nine months, with the overall trend for the currency remaining negative and global growth worries still intact.

Traders said the euro had support at an options barrier at $1.2050 and below that at the psychological level of $1.2000. Below there the next target would be the 2010 low at $1.1876.

PMI data showed private sector activity in the euro zone as a whole shrank for a sixth successive month, which data collector Markit said was consistent with a quarterly GDP fall of 0.6 percent.

The PMI numbers were weak as expected, and the risk is that the ECB (European Central Bank) will potentially ease more,� said George Saravelos, FX strategist at Deutsche Bank.

A rate cut or cash injection from the ECB could give investors even less incentive to hold the euro.

Since the ECB cut interest rates earlier this month the euro has fallen heavily against a range of currencies, including those which usually fall in times of heightened risk aversion.

It traded at A$1.1770 against the Australian dollar, near Monday�s record low of A$1.1690, and at C$1.2342 versus the Canadian dollar, also near a record low.

The euro fell 0.5 percent against the safe-haven yen to 94.50 yen, holding above Monday�s low of 94.23 yen, its lowest in nearly 12 years.

The dollar index, which measures its value against a basket of currencies was at 83.871, just below Mondays two-year high of 83.999.�Reuters

Euro slumps broadly

 

NEW YORK: The euro fell to a two-year low against the US dollar and a nearly 12-year trough against the yen on Monday on fears Spain is edging closer to needing a full-scale bailout that the euro zone cannot afford.

Ten-year Spanish bond yields jumped as high as 7.596 percent, the highest since the euro was created in 1999. That saw the euro drop for a fourth straight day against the dollar to hit a low of $1.2067, the weakest since June 2010.

Traders and analysts say the euro looks poised to take out the key $1.20 threshold. A break beneath that could see the currency head towards its June 2010 low of $1.1875, which marked the weakest since March 2006.

�With the 10-year yield above 7 percent and quickly approaching 8 percent, we�re at that moment where it starts to look a lot more real than it was even just a few weeks ago,� said John Doyle, foreign-exchange strategist at Tempus Consulting in Washington, referring to a full-scale sovereign bailout for Spain.

Adding to pressure on the euro was a weekend report that the International Monetary Fund may refuse to contribute further funding for Greece. The IMF dismissed the report, saying it was �supporting Greece in overcoming its economic difficulties.�

The European Central bank, the European Commission and the International Monetary Fund � known as the troika � will arrive in Athens on Tuesday to push for further cuts needed for the country to qualify for further rescue payments.

The euro last traded at $1.2135, down 0.2 percent. After closing at $1.2156 in New York on Friday, it �gapped� lower to open at $1.2120 in Asia on Monday morning, signifying the market perceived the value of the euro had dropped over the weekend in response to events in the euro zone.

Some $6.46 billion of euros have changed hands on Reuters Dealing through the Monday session.

Against the yen, the euro hit 94.22 yen, a level not seen since late 2000, and last was off 0.3 percent to 95.11.

Weakness in the euro was seen across the board as it also hit a record low versus the Australian dollar, a more than 3-1/2-year low against sterling and a 9-1/2-year low versus the Norwegian crown.

Spain�s Economy Minister Luis de Guindos ruled out a full-scale financial rescue on top of the 100 billion euros already earmarked for the country�s banks.

Ashraf Laidi, chief global strategist at City Index Ltd. in London, said some economists estimate a second bailout for Spain could amount to as much as 300 billion to 400 billion euros.

Tiny Murcia was on course to be the second Spanish region to request help from the central government, and media reported half a dozen local authorities were ready to follow in the footsteps of heavily indebted Valencia, which rattled markets on Friday.

Catalonia, Spain�s biggest region by gross domestic product, also has the highest debt. It said this week it had not decided whether to tap the funding mechanism, though it is seen as an increasingly likely candidate.

Axel Merk, portfolio manager of the $500 million Merk Hard Currency Fund in Palo Alto, California, said the market is pricing in the reality that �the Spanish government is now clearly on the hook for the regions� debt.

�Spain�s central government is expected to bail out its regions - and in return may ask for a bailout itself,� he wrote to clients. �As long as debt is merely shuffled around, the euro zone crisis won�t be solved.�

Italy may be under similar pressure, with a newspaper quoting unnamed government specialists as saying that 10 Italian cities including Naples and Palermo face problems managing their finances.

The dollar fell to a seven-week low of 77.95 yen, before rebounding to 78.43, little changed on the day.

Japan�s vice finance minister for international affairs was reported as saying the country will not exclude any options when responding to excessive currency moves, although traders said the authorities were unlikely to consider intervening while the dollar held above 76 yen.�Reuters