AP - Egypt's central bank stepped in Tuesday to halt a sharp fall in the country's currency, while the stock exchange outlined regulations aimed at thwarting potentially steep losses when it reopens next week as massive anti-government protests batter investor confidence.
I's hard not to laugh at the irony of recent central bank currency actions.
After complaining for years about the strength of the Real, the Brazilian central bank stepped up intervention actions hoping to stop a plunge in the currency.
Turkey now attempts to attract capital after taking measures for the past four years to stop the flow of money into the country.
In India, the central bank seeks to stop a plunge in the Rupee which is at a record low of record low 58.95 to the dollar.
Late on Friday Venezuela shocked the world when instead of reporting an update on the ailing health of its leader, as many expected it would, it announced the official devaluation of its currency, the Bolivar by nearly 50% against the dollar yet still well below the unofficial black market exchange rate.
The violence in Egypt following the military overthrow of former president Mohamed Morsi continues to escalate. Over 800 are dead according to official reports, thousands dead according to other reports.
The stock market, bond market and credit markets have all responded. Credit Default Swaps (CDS) soared to 810, placing Egypt in the top-10 of countries likely to default on sovereign bonds.
Yesterday Ford CEO Alan Mulally said he was concerned about the weakness in the Japanese yen, the implication being that the diving currency is giving an advantage to competitors who can sell for less. This story is part of a broader meme, that there's a "currency war" going on, as various countries and their central banks attempt to manipulate their currency lower to boost exports.
A wave of protests swept across Europe today. Two-thirds of Spain's commuter trains were shut down. In Portugal, bus and train were suspended across the country. Italy, Greece, and Belgium also saw major protests.
Please consider Der Spiegel report Anti-Austerity Protests Spark Violence