FOREX

The Aussie dollar declined rapidly on Friday as concern in Asia over another blow out in credit spreads from a possible Dubai World debt default rocked the high yielders.

The yuan's link to the dollar is problematic for some sectors in the European economy, European Commission President Jose Manuel Barroso said on Sunday, ahead of a summit with Chinese leaders.

The central bank of the United Arab Emirates is closely watching events stemming from the Dubai debt crisis to ensure no harm results for the national economy, a spokesman for the central bank said on Saturday.

Brazil's central bank offered to buy dollars on the spot foreign exchange market on Friday in an ongoing effort to boost international reserves and soak up greenbacks pouring into the economy.

Finland's Olli Rehn was named on Friday to the key role of economic and monetary affairs commissioner in the European Union executive, in which he will drive efforts to revive the European economy

European shares extended gains to hit a session high on Friday, as U.S. futures indicated Wall Street may not drop as much as previously expected.

Britain's leading share index was 0.2 percent lower by midsession on Friday, falling for a second session with banks pressured by persisting anxiety over Dubai's debt default and oil majors weak with the crude price.

U.S. stock index futures were sharply lower on Friday, a day after markets were shut for the U.S. Thanksgiving holiday, as a possible debt default at a Dubai state-owned conglomerate sparked fears of renewed global financial turmoil.

The yen hit a 14-year high versus the dollar and rallied broadly on Friday, while the dollar jumped against most other currencies as investors cut carry trades and risk exposure on concern about Dubai's debt problems.

European Commission President Jose Manuel Barroso unveiled the EU executive's new line-up on Friday, handing Finn Olli Rehn a key role overseeing monetary affairs as part of efforts to revive the European Union economy.

European shares dipped by midsession on Friday as concerns about debt problems in Dubai rippled through the market, with banking and oil stocks among the worst performers.

U.S. stock index futures were sharply lower on Friday, a day after markets were shut for the U.S. Thanksgiving holiday, as a possible debt default at a Dubai state-owned conglomerate sparked fears of renewed global financial turmoil.

The yen hit a 14-year high versus the dollar and rallied broadly on Friday, while the dollar jumped against most other currencies as investors cut carry trades and risk exposure on concern about Dubai's debt problems.

The Australian Dollar opens lower today at 0.9140 after a volatile local session on Thursday. The Aussie's foray above US93 cents due to a weak greenback was short-lived after the release of third-quarter capital expenditure data which fell 3.9 per cent. The unit fell sharply to an intraday low of 0.9230 ahead of a move back up to 0.9245 heading into European trade. In offshore trade, the unit moved between a high of 0.9245 down to 0.9100 on renewed risk aversion, however volumes were far thinn...

The dollar edged up from 14-year lows against the yen on Thursday as renewed risk aversion prompted investors to shed riskier assets, giving pause to broad dollar selling.

News, details on corporate bond issues in the European markets on Thursday:

Abu Dhabi is not going to crow publicly over Dubai's troubles. But it will use the opportunity to assert control over its upstart neighbour. The price for Abu Dhabi's help could be prize assets like airline Emirates. Dubai has little choice but to do what it is told.

Debt problems in Dubai hit global stocks, helped lift bonds and took the dollar away from a 14-year low against the yen on Thursday.

A dollar bond sale by Saudi-backed Gulf International Bank (GIB) was pulled after Dubai's move to delay repayment on billions of dollars of debt owed by its two flagship firms, sources said on Thursday.

The dollar rebounded from a 14-year low against the yen on Thursday as traders betting against the dollar seized on the broad risk reduction prompted by Dubai's debt problems to cash in on its recent slide.

The Australian Dollar opens higher today at 0.9310 after a positive local session. Support held on Wednesday morning at US92 cents followed by a steady climb during Asian trade to an intraday peak of 0.9252.

Leading euro zone officials expect no immediate results from talks in China this weekend to push for an appreciation of the yuan, euro zone sources said. We are reasonable enough to understand that two months is not feasible, and we are determined enough to convey the message that two years is too long, one of the sources said of European views on when the yuan should be allowed to rise.

Brazil officials are worried a tumbling U.S. dollar is luring investors into risky currency derivatives contracts a year after the country grappled with massive losses from wrong, one-way wagers on the real (BRBY), O Estado de S. Paulo reported on Wednesday, citing a finance ministry aide.

The dollar hit a 15-month low against a currency basket on Wednesday after Federal Reserve minutes showed policymakers saw the U.S. currency's recent decline as orderly. Traders dumped the dollar across the board, pushing it to a 10-month low against the yen, as the minutes also reinforced the view U.S. interest rates will stay essentially at zero until around mid-2010.

The U.S. economy grew more slowly than first thought in the third quarter, but a fifth month of gains in house prices in September and an improvement in consumer morale signaled the anemic recovery was intact. In its second estimate of third quarter gross domestic product published on Tuesday, the Commerce Department said the economy expanded at a 2.8 percent annual rate, probably ending the most painful U.S. recession in 70 years.

The Australian Dollar opens lower today against the greenback at 0.9202. The risk appetite that buoyed the Aussie on Monday night evaporated yesterday after news emerged from China that it's banking regulator issued a stern warning to banks regarding strict adherence to capital requirements or face sanctions.

European shares turned negative in afternoon trading on Tuesday after U.S. GDP data showed the economy grew more slowly than initially thought in the third quarter.

U.S. stock index futures pointed to a flat open on Tuesday after data showed the U.S. economy grew in the third quarter, but at a slower-than-expected pace.

European shares were slightly higher by midday on Tuesday, extending the previous session's sharp gains, with stronger mining and pharmaceutical stocks outpacing weaker financial shares.