Foreign Exchange Insights and Next Week
Goodbye to a Thought-Provoking Summer
August 29, 2013
Dollar movements against the yen, euro, Swiss franc, and sterling between the U.S. Memorial Day and Labor Day weekends were no greater than 3.0%. In each of the instances, the dollar lost ground. Although it did well in the final week of summer, it seems premature to characterize such gains as anything more than noise. […] More
Central Bank Watch
Bank Indonesia Makes an Unscheduled Tightening of Policy
August 29, 2013
Two weeks after a scheduled meeting that left the key BI policy rate at 6.5%, the Board of Governors convened for an unscheduled meeting, after which a package of measures including a BI rate hike to 7.0%, a 50-basis point deposit rate hike to 5.25%, and a 25-bp lending rate increase to 7.0% was revealed. […] More
Central Bank Watch
Central Bank of Brazil Lifts Selic Rate Further
August 29, 2013
In a nearly universally expected move, Brazil’s monetary policy committee, Copom, increased the Selic interest rate to 9.0% from 8.5%. The cumulative move over the past four months has been an advance of 175 basis points through increments of 25 bps in April and 50 bps each in May, July and now August. A released […] More
New Overnight Developments Abroad - Daily Update
Firmer Dollar
August 29, 2013
The dollar has benefited from the lessening imminence of U.S./UN military action against Syria. The greenback rose overnight by 0.8% against the Swiss franc, 0.6% versus the euro, 0.5% relative to the yen, 0.2% vis-a-vis the kiwi and loonie, and 0.1% against the Australian dollar and sterling. The yuan is steady. There were some sizable […] More
