Finotec

Forex outlook:

The yen pushed back towards a one-month high against the euro on Friday, holding it`s gains after a German finance official said the Japanese currency's weakness would be a topic at an upcoming Group of Seven meeting. The G7 gathering in Singapore later this month has loomed large as investors look to see if finance ministers keep up pressure on countries enjoying big trade surpluses to allow more currency appreciation. Some analysts say the remarks reflect unease over the persistent strength in the single European currency against the yen that has taken it up about 6 percent this year to all-time highs since the euro was launched in 1999. Japanese vice finance minister for international affairs Hiroshi Watanabe said currencies will be one topic but declined to say which one will be in focus. Investors are also awaiting remarks from Bank of Japan Governor Toshihiko Fukui later in the day after the central bank kept monetary policy steady with rates at 0.25 percent. Fukui's comments on the rate outlook will be keenly watched after data showing a surprisingly big inflation slowdown in the revised consumer price index last month cast doubt on whether the BOJ would raise rates again this year. The dollar dipped to 116.25 yen from 116.43 yen in late New York trade but off the low of 115.98 yen struck in the previous session. The euro also eased 0.25 percent to 147.85 yen and was near Thursday's low of 147.84 yen, the weakest since Aug. 11. The single currency also edged down to $1.2720 from $1.2731.

Gold: Gold steadied on Friday after falling more than 2 percent in New York due to the stronger dollar, lower oil prices and fear over possible U.S. interest rate hikes. Investors are keeping an eye on the dollar for direction in the gold market. Spot gold inched up to $618.10/618.85 an ounce after dropping to a 1-week low of $614.80 an ounce.

Crude Oil: Crude oil futures fell to a fresh five-month low below $67 Thursday after BP said production at its giant Prudhoe Bay field in Alaska could be back to full capacity by the end of October. Also, U.S. government data showing domestic distillate and gasoline stocks rose by larger-than-expected amounts last week, overpowered a larger-than-expected drawdown in crude supplies. October delivery crude settled 18 cents lower at $67.32, after extending the day's low to $66.76, the cheapest since April 7, on the New York Mercantile Exchange.

 
Pool position: