Dollar Falls on U.S. Manufacturing Slump, Credit-Market Losses
Aug. 21 (Bloomberg) -- The dollar fell the most in more than a month against the yen on speculation a manufacturing industry contraction and credit-market losses will prompt the Federal Reserve to hold off from raising interest rates.

Leading Economic Indicators in the U.S. Probably Fell in July
Aug. 21 (Bloomberg) -- The U.S. economic outlook darkened in July for a third consecutive month and manufacturing in the Philadelphia region contracted in August, reports today may show.
The Conference Board's index of leading indicators, a measure of the economy's direction over the next three to six months, fell 0.2 percent, according to the median forecast in a Bloomberg News survey. The Philadelphia Federal Reserve's gauge of manufacturing was probably less than zero for a ninth month.

Banks Warn Credit Card Legislation May Hurt, Not Help Consumers
Aug. 21 (Bloomberg) -- Frank Chan said he had been a loyal Citibank cardholder for 20 years when he was told by a customer service agent that stopping a check payment would cost him $29.
He said he was shocked to see on his next credit-card statement that as a result his interest rate had more than doubled, from 13.9 to 28.9 percent, and applied to his current balance.

Euro May Rise as Recent Losses Deemed Excessive
Aug. 21 (Bloomberg) -- The euro will rebound against the dollar as recent losses are excessive, said Tohru Sasaki, chief currency strategist at JPMorgan Chase & Co.
The euro's 14-day relative strength index was 25.5 versus the dollar today. A level below 30 signals the currency's losses may reverse. Futures traders raised their bets on a euro fall to the highest amount since May, positions that are often used as a contrary indicator.

U.K. Pound Declines Against Euro Before Retail Sales Report
Aug. 21 (Bloomberg) -- The U.K. pound fell against the euro for a fourth day before a government report that may show retail sales fell last month, adding to evidence the economy is headed for a recession.
Sales at British retailers slipped 0.2 percent, after dropping in June by the most since at least 1986, a survey of economists by Bloomberg News showed. The currency dropped yesterday after the minutes of the Bank of England's August policy meeting showed policy makers judged inflation risks ``have probably eased a little'' in the past month, prompting traders to reduce wagers on higher interest rates.

Australian, New Zealand Dollars Advance on Commodities, Yield
Aug. 21 (Bloomberg) -- The Australian and New Zealand dollars gained after commodities prices rose and traders bet their declines in the past month are overdone.

Asian Currencies: Indonesian Rupiah Gains, Won Falls on Stocks
Aug. 21 (Bloomberg) -- The Indonesian rupiah rose to the highest in almost two weeks on speculation the central bank is seeking a stronger currency to curb inflation. The South Korean won fell as global funds dumped local stocks.

ABN Amro Cuts End-2008 Australian Dollar Forecast to 87 Cents
Aug. 21 (Bloomberg) -- ABN Amro Holding NV cut its Australian dollar forecasts for this year, saying slower global economic growth, lower commodity prices and reductions in domestic interest rates will weigh on the currency.
The Australian dollar, known as the Aussie, will trade at 83 U.S. cents at the end of September and 87 cents at year-end, weaker than a previous prediction of parity, the bank said in a research note. It's dropped 7.5 percent against the U.S. dollar this month, the biggest slide among the 16 most-active currencies, as traders bet the Reserve Bank of Australia will reduce borrowing costs to bolster the economy.

Source -bloomberg.com