Market information

Tuesday, May 18, 2010

The European Central Bank has bought EUR 16.5 billion worth of government bonds up to May 14th. This is the result of the first week of buying bonds by the central bank as part of the intervention program members of the monetary union agreed on to stabilize the euro. However, confidence in the euro has not yet returned. The currency fell further on Monday to a new low of USD 1.2321 per euro.

The continuing weakness of the euro has made the dollar more attractive as a currency for investors. The diversification of portfolios over different currencies last year has strengthened the euro, but this effect is now reversing and working against the euro. As a consequence of this effect, net purchases of dollar denoted investments in the United States rose to USD 140.5 billion in March, up almost three times from February.

The Dutch trade surplus has risen to the highest level since December 2007 in March. Imports increased 22% since March last year and exports rose 16% during the same period. This resulted in the current surplus of EUR 4.6 billion.

In the attachment below, today’s market data on money and capital market rates as well as other rates are presented. For more history of these rates or other rates feel free to ask: .(JavaScript must be enabled to view this email address).

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