Currency Markets in the News
Currency Intervention: Can It Get a Little Respect, Please?
March 12, 2009
Currency intervention occurs when central bankers either for their bank’s own account or as an agent for the government buy or sell other currencies against their own money in the marketplace with the intent of influencing the exchange rate. Intervention is needed to enforce fixed exchange rates and remains one of several tools of monetary […] More
Central Bank Watch
Bank of Korea Passes
March 12, 2009
South Korean monetary policy had been eased aggressively, with six rate cuts totaling 325 basis points and spaced between October 9th and February 12th. Opinion was divided on the likelihood of another reduction today, and officials decided to adopt a wait-and-see approach instead to monitor a little better the impact of the stimulus provided so […] More
Central Bank Watch
Brazilian Rate Cut
March 12, 2009
The Bank of Brazil website posted a brief statement explaining yesterday’s unanimous decision to cut the Selic interest rate by 150 basis points to 11.25%. The Bank’s first easing, a reduction of 100 basis points, was implemented on January 22nd, and minutes of this week’s meeting will be published on March 19th, and the next […] More
Currency Markets in the News
More Bad News From Germany
March 12, 2009
Until passed recently by China in GDP rankings, Germany had been in third place. Number two-ranked Japan and German are two of the hardest hit economies in this global recession, allowing China to widen its lead over Europe’s biggest economy and to close its shortfall relative to Japan. Overnight in Asia, Japan released revised fourth-quarter […] More
Central Bank Watch
Swiss National Bank Unveils Multi-Pronged Easing Plan
March 12, 2009
Yesterday’s leaked news about a 0.25 basis point rate cut proved correct, and the Swiss National Bank announced other actions to “counter the risk of deflation.” Swiss monetary officials assume the following even with the new steps: GDP contracting by 2.5-3.0% this year, a downward revision from a drop of 0.5-1.0% assumed last December. On-year […] More
New Overnight Developments Abroad - Daily Update
New Overnight Developments Abroad: New Round of Risk Aversion
March 12, 2009
The yen and dollar are higher, while stocks and bond yields are mostly lower. The dollar lost 1.1% against the yen but is trading up 1.1% against the Australian dollar, 0.9% versus sterling, 0.4% against the euro, and 0.3% relative to the kiwi, Canadian dollar, and Swiss franc. The Nikkei fell 2.4%, and the Dax, […] More
