Foreign Exchange Insights and Next Week
Bolder Official Efforts to Influence Currency Movements
September 25, 2014
Officials outside the United States had for some time been frustrated by the weakness of the dollar in spite of superior U.S. fundamental economic comparisons of real growth, labor market conditions, and interest rates. Now that the Federal Reserve’s third round of quantitative easing is wrapping up and speculation is heating up about an initial […] More
Central Bank Watch
Czech National Bank Keeps Existing Policy Stance as Expected
September 25, 2014
There are two elements to Czech monetary policy. A virtual zero interest rate policy (ZIRP), with the two-week repo rate pinned at 0.05%. A one-side exchange rate commitment, enforceable by intervention when necessary, that prevents the koruna from strengthening beyond 27 per euro. The 0.05% repo rate level has existed since a 20-basis point cut […] More
Central Bank Watch
No Interest Rate Changes after Monthly Turkish Monetary Policy Committee Meeting
September 25, 2014
As expected, officials at the Central Bank of the Republic of Turkey left their signature 1-week repo rate at 8.25%, their overnight borrowing rate at 7.5%, and their overnight lending rate at 11.25%. The previous last meeting to end without an interest rate change was on April 24th. In August, the lending rate was cut […] More
New Overnight Developments Abroad - Daily Update
Dollar Buoyancy Especially Against the Kiwi
September 25, 2014
The New Zealand dollar (a.k.a. the kiwi) plunged 1.6% overnight to a one-year low of $0.7944 against the U.S. currency, as RBNZ Governor Wheeler elaborated upon his recent claim that the current kiwi level is “unjustified and unsustainable.” The Australian dollar lost as much as 1.0% to USD 0.8791, a 7-month low, as a top […] More
