FOREX TRADING : MONTH END ANALYIS OF FOREX IN VARIOUS MARKETS

• INDIA : Oil imports saw a decline in rupee against dollar on Thursday. But this month showed a continued trend of increased forex reserves as officials urged G 20 to construct a control on forex inflows. Indian forex reserves have skewed upto 6 % since early September. Subbarao added that forex management requires costs as well and it shall be dealt with by all the countries alike.
• CHINA : Stringent monetary policies are to be applied to overcome inflation arising from quantitative easing in major economies. In view of inflationary conditions PBOC is expected to raise interest rate. US Treasury Secretary Geithner urged not to exercise competitive devaluation. US having devalued greenback through QE tries to use China as a scapegoat. Chinese Vice President Wang Qishan had talks with Geithner which in Wang's opinion will help relations between the two nations. China's forex reserves hit an all time high in third quarter this year. But due to decreasing trend in US dollar, China will face forex losses since dollar constitutes as a mojor representative in Chinese forex holdings.
• JAPAN : Since the investors are skeptic about the Fed tactics regarding QE, dollar showed a rising and then falling trend amid this vague situation. Japanese Finance Minister expressed his views regarding this situation as he said that Japan is hawk-eying the global forex stances. Following the BoJ decision to maintain the same interest rate for the last quarter, yen showed an rise against dollar on Thursday.
• US : The extent of quantitative easing in November will have effects rooting to the very core of global forex market. Investors perceived that Fed's plan of pooling the market with greenback will depreciate it's value; but they have now rather contrasting views upon the extent of QE. Hopes lie on the GDP that it will immune the drastic dominance of the imminent stimulus plan if it appear the be stronger-than-anticipated. 
• Brazil : Brazil's Central Bank showed a disconcern towards increasing interest rates despite warmed up economic conditions. At G20 Brazil opted that measures should be taken to move towards a market determined forex system.