Bank of Korea
Marginally Softer Dollar
October 14, 2020
The U.S. dollar edged down overnight by 0.3% against sterling, 0.2% relative to the Australian and New Zealand dollars, and 0.1% versus the yuan, Swiss franc and yen, while holding steady vis-a-vis the euro and loonie. The dollar price of gold firmed 0.5%. Stock markets in the Pacific Rim rose 0.9% in Indonesia, 0.7% in […] More
Covid-19 Is in Control Rather than Being Under Control
July 16, 2020
The best laid plans of mice and men…. Governments want to reopen economic activity, but a rising curve of new coronavirus cases both around the world and in the United States is setting other imperatives. Over the past 24 hours, there were 230.3k cases world wide, including a record 71.7k in the United States, where […] More
South Korean Central Bank Rate Cut after Big Downward Growth Forecast Revision
May 28, 2020
Another central bank interest rate cut was announced today, this time by the Bank of Korea, where by a unanimous decision the 7-day repo rate was lowered 25 basis points to 0.50%. This was the second cut of 2020 following a 50-basis point reduction back in March. The 0.50% level represents what officials have considered […] More
U.S.-Sino Tensions Mount but Dollar Steady and Equities Mostly Higher
May 28, 2020
The Chinese National People’s Congress passed the proposed Hong Kong security bill, disregarding President Trump’s warnings against doing that. Secretary State Pompeo said America will no longer consider the former British colony as autonomous, and the Trump Administration is mulling a range of sanctions against Beijing and had its call for a special UN Security […] More
Improved Prospects for an Oil Production Agreement Sends Price Higher
April 9, 2020
West Texas Intermediate crude oil rose 3.9%. Optimism is growing that Saudi Arabia and Russia will end their dispute over production cuts. Elsewhere among commodities, the price of gold advanced 1.5% overnight and is above $1,700 per ounce. Markets are gliding into the long Good Friday/Easter holiday. Mexico, New Zealand and Norway were shut this […] More
Bank of Korea’s Base Rate Reduced 50 Basis points to 0.75%
March 16, 2020
The Bank of Korea’s base rate was reduced to new record low of 0.75%. Like the Fed, Reserve Bank of New Zealand, and Monetary Authorities of Hong Kong and Macau, the BOK acted between scheduled policy meetings. Korea’s rate benchmark had been 1.25% since a pair of 25-basis point cuts in July and October of […] More
Monetary Efforts to Counter Covid-19 Economic Damage All in Vain
March 16, 2020
The contagion news over the weekend was very bad. Italy suffered a bigger daily jump in deaths than even China had, and all evidence suggests that governments that did not test extensively for the virus at the first sign of trouble have brought upon their countries larger humanitarian disasters. The United States seemingly falls into […] More
Stampede Out of Risky Assets Intensifies
February 27, 2020
Share prices fell 2.7% in Indonesia, 2.1% in Japan, 1.2% in Taiwan, 1.1% in South Korea, 0.9% in New Zealand and 0.8% in Australia. Equities are down at least 1.5% in France, Germany, the U.K., Spain, and Switzerland, and U.S. futures point to a drop of over 1.0%. Sometime today, the cumulative decline of the […] More
Better-than-Expected Batch of Chinese Data Lifts Renminbi
January 17, 2020
The dollar fell 0.3% against China’s renminbi but advanced 0.2% versus the euro, kiwi and Swiss franc and by 0.1% relative to the loonie. The dollar remained steady against the yen, sterling, and Australian dollar. The recent upturn in share prices was extended in the Pacific Basin and Europe, with gains of 0.6% in New […] More
Bank of Korea Eases Monetary Policy Again
October 16, 2019
The Bank of Korea enacted its second 25-basis point repo rate cut since July and released a statement that suggests more ease may be done. But with two of seven policymakers dissenting in favor of not cutting the main interest rate today, the timing and certainty of a third move has been thrown into some […] More
