Forex Market Movers Summary 1/10/2012

ForexTV   |  January 10 2012 9:33 EST

ForexTV.com (New York) by Kiana Danial

A key meeting scheduled for later in the day between German Chancellor Angela Merkel and International Monetary Fund Managing Director Christine Lagarde. German Chancellor said yesterday that Greece would be the focus of talks. In a joint press conference with French President Nicolas Sarkozy yesterday she said they want Greece to stay in the euro.

 Iran's currency fell  20 percent against the dollar in the last week despite Iranian central bank intervention. Many  Iranians are concerned about the economy obviously, trying to seek information on the Internet or from each other, but guess what, the word "dollar" appeared to be blocked on text messages on Tuesday. I have no idea where the Iranian government is trying to go with this.

 The exchange rate has risen again to around 17,000 rials, according to exchange counters, 50 percent more than what the Central Bank of Iran has referred to at 11,240 rials.

The currency slide is a huge risk for consumer prices in Iran, where the official inflation rate - considered an underestimate by many economists - is already around 20 percent and rising. Tensions between the U.S. and Iran have been on a rise, and at the same time many Iranian authorities seem to be secretly benefiting  from the rise in rial's exchange rate.

Oil rose in New York for the first time in four days on growing concern that the dispute between Iran and western governments may lead to a disruption in Middle East crude exports.

Forex research by ForexTV.com