January 26, 2012
Kitco News
By Allen Sykora
January 26, 2012
(Kitco News) - The U.S. dollar remains weaker in response to a dovish Federal Reserve, successful Italian bond auction and reports of progress on private-sector-involvement talks for Greek debt, says FOREX.com. The markets main focus late Wednesday and overnight was the Federal Open Market Committees pledge to keep interest rates low until late 2014. Meanwhile, says FOREX.com, Italy sold its maximum target of 5 billion euros at an auction of zero-coupon and inflation-linked bonds. Italian borrowing costs fell, with the 10-year yield currently lower by about 13bps to 6.10%, FOREX.com reports. Sovereign-yields spreads for most of Europe also eased, with the exception of Portugal. Meanwhile, there are reports that Greeces private-sector credits are willing to accept a weighted average coupon of 3.75%, which is below the previously sought 4%. The news that negotiations are progressing with a deal on the horizon supported the euro, as the common currency rose to session highs of around 1.3170/75, says Forex.com. Metals traders tend to monitor foreign-exchange developments since moves in the dollar often affect precious and base metals alike.
