Archive for April 11th, 2013

Foreign Exchange Insights and Next Week

What happens to the Euro If the Yen Keeps Falling?

April 11, 2013

The Kuroda revolution in Japanese monetary policy is a huge and extremely rare event that reminds me somewhat of October 1979 when the Federal Reserve changed the operative target of its money market operations to nonborrowed reserves.  This might seem an odd comparison since the Fed was trying to tame runaway inflation and the Bank […] More

Central Bank Watch

National Bank of Serbia Keeps 11.75% Interest Rate Level

April 11, 2013

Serbia’s one-week repo rate was lifted eight times between June 2012 and February 2013 against the backdrop of a sharp acceleration of inflation from less than 3% a year ago to a double-digit crest in the first quarter of this year.  The eight central bank interest rate increases took such from 9.50% to 11.75% level.  […] More

Central Bank Watch

Bank Indonesia

April 11, 2013

The BI interest rate was held at 5.75%, its level since cuts of 25 basis points in October 2011, 50 basis points in the following month and 25 basis points in February 2012.  That easing more than offset a single post-Great Recession 25-bp hike administered in February 2011.  During the global downturn, 300 bps of […] More

Central Bank Watch

Bank of Korea Policy Still on Hold

April 11, 2013

Five interest rate increases between June 2010 and June 2011 raised such from 2.0% to 3.25%, but the last two changes of the seven-day repo rate were cuts of 25 basis points administered in July 2012 and October 2012.  The rate has been at 2.75% ever since and remains paused after this month’s policy meeting.  […] More

New Overnight Developments Abroad - Daily Update

Euro Stronger and Dollar Soft

April 11, 2013

The euro reached new highs of $1.3135 and JPY 130.84.  The yen matched but did not go through yesterday’s low of 99.87 per dollar.  On balance since Wednesday’s closing levels, the dollar shows losses of 1.0% against the kiwi, 0.6% versus the loonie, 0.5% relative to the Swiss franc, 0.4% against the euro and sterling […] More

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