FOREX

The euro (EUR) continues to weaken against the U.S. dollar (USD) due to growing concerns over the political and economic situations in the region, with the latest dismal data and elections in France and Greece likely to put further downward pressure on the single currency.

The Swiss franc jumped Wednesday after the Swiss National Bank announced fresh measures to drive down money market rates to stem the franc's strength, but refrained from direct intervention or pegging the currency as some had speculated.

The safe-haven Swiss franc nursed heavy losses in Asia on Friday, having posted record one-day falls against the euro and dollar after the Swiss National Bank threatened to step up its fight to curb the franc's strength.

The Swiss franc hovered near record highs against the dollar and euro in Asia on Tuesday, having surged on the back of a global stock market rout as a crisis of confidence gripped investors.

Japanese Finance Minister Yoshihiko Noda on Friday repeated that he was closely watching yen moves, signalling Tokyo's readiness to continue with its yen-weakening intervention that media said reached a record 4 trillion yen ($50.6 billion).

The Swiss franc fell from record highs on Wednesday after the Swiss National Bank shocked the market with an interest rate cut, but the retreat should prove fleeting given mounting concerns about global growth.

Russian Prime Minister Vladimir Putin did not mince words describing the United States' conduct during the debt deal crisis. Putin did, however, recognize that the United States, in the end, had the common sense to do the right end.

The Swiss franc held hefty gains in Asia on Wednesday, having rocketed to record highs as investors scrambled for a safe haven on renewed tensions in the euro zone debt market and worries about a global slowdown.

Japanese Finance Minister Yoshihiko Noda signalled on Tuesday that Tokyo is in close touch with European and U.S. counterparts on the yen's strength, but declined to say if it would sell the yen to rein in its surge in value.

Asian stocks struggled and the dollar wavered on Friday as U.S. lawmakers squabbled over a compromise to avoid an unprecedented debt default, while growing worries about Europe's debt crisis weighed on the euro, adding to investor wariness.

The euro stayed under pressure in Asia on Friday as worries about the euro zone debt crisis flared up following a jump in Italy's borrowing costs, while investors also kept the dollar at arm's length amid the ongoing threat of a U.S. debt default.

The euro struggled to find any friends in Asia on Thursday, on renewed fears of contagion in Europe, while the U.S. dollar remained on the defensive as Washington showed no signs of progress in debt agreement.

The U.S. Congress and world markets faced more uncertainty on Tuesday as Republican leaders delayed action on a plan to raise the government's $14.3 trillion borrowing limit, narrowing the chances for a deal to avert a debt default.

Asian stocks and the U.S. dollar fell on Wednesday while gold hit a record high at more than $1,623 an ounce, as a drip feed of news out of Washington indicated politicians were making little progress on a plan to lift the U.S. debt ceiling.

Japanese policymakers are becoming alarmed at persistent yen rises and considering solo currency intervention as an increasingly viable option for the near term, sources with knowledge of the matter said on Tuesday.

Japanese Finance Minister Yoshihiko Noda kept up his warning to markets against pushing up the yen too much, saying that he was aware of demands from the business sector for authorities to act against yen rises that hurt the export-reliant economy.

Asian shares edged higher on Tuesday, bouncing back from a slide the previous day, after U.S. stocks posted only modest losses in reaction to the worsening deadlock in Washington over raising the debt limit and avoiding a technical bond default.

U.S. money managers sitting on piles of cash are sniffing out opportunities to make a killing on the political circus in Washington over raising the nation's debt ceiling.

Japanese trade minister Banri Kaieda said on Tuesday that the Ministry of Finance and the Bank of Japan should consult and make an appropriate decision on intervening in the foreign exchange market, Jiji news agency reported.

The U.S. dollar remained on the defensive in early Asia-Pacific having hit record lows on the safe-haven Swiss franc as the market awaited the latest attempt by President Barack Obama to break the deadlock on debt talks.

Japanese Economics Minister Kaoru Yosano said on Tuesday that large swings in the foreign exchange market were undesirable and that an excessive rise in the yen would hurt Japan's manufacturing sector.

The dollar slipped in early Asia-Pacific trade on Monday as investors looked for signs of progress to break the deadlock that will avert a U.S. debt default.

Bank of Japan Governor Masaaki Shirakawa said on Monday that the central bank needs to closely watch recent rises in the yen, which may hurt the country's economy by undermining exports, corporate revenue and sentiment.

Stocks slipped while the Swiss franc rose and gold hit a record high on Monday as hopes for a political deal to avert a U.S. default began to fade, though investors were mostly seeking to protect their portfolios with no signs of panic selling.

End of Day FOREX Summary

Czech government ruled out adopting euro as its currency for now and the country will not put any effort to enter the exchange rate mechanism next year, said the nation’s Prime Minister Petr Necas on Thursday.

China has stubbornly refused to cede to U.S demands to let the yuan rise against the dollar. The question is, among the US and China who will gain and who will lose if China ever agreed to appreciate its currency?

The pair seems to have a weak resistance around last week's high of 1.0064 (also 23.6 percent Fibonacci retracement from 1.1729 to 0.9463) and fresh dollar supportive could take it to 1.0331, the 38.2 percent Fibonacci.

The struggle of EUR/USD to free from the downward channel formed early November intensified after Friday's weak US jobs data, but the pair is finding it really difficult to break above the key long-term support-turned resistance of 1.3422.