We once again managed to trade sideways, as most companies are probably busy with budget and strategy meetings. Local importers and exporters showed little interest in the currency markets yesterday. Most traders are still trying to figure out what impact the Soccer World Cup will have on the local currency. For now we remain in tight ranges until fresh economic indicators give some direction to the currency markets.

Developed countries may slip back into recession if they abandon strategies deployed to battle the global financial crisis too early, the head of the International Monetary Fund warned on Monday. Recovery in private demand and employment are necessary conditions for governments to begin unwinding policies designed to support their economies, though the right timing depends on specific conditions in each nation, Dominique Strauss-Kahn said. “Recovery in advanced economies has been sluggish,” he told reporters in Tokyo. “We have to be cautious because the recovery has been fragile.” Marek Belka, the head of the IMF’s European department, echoed Strauss-Kahn’s comments, saying the continent’s economy was not yet on solid ground.