Central Bank Watch
Bank of Israel Rate Lifted 25 Basis Points
March 29, 2010
The Bank of Israel raised its key borrowing rate to 1.5% from 1.25% as expected. In doing so, Israel joined Australia as the only economies with four rate hikes so far, and all four moves by each central bank have been by increments of 25 basis points. Today’s move, however, was the first one in […] More
Central Bank Watch
Another 25-Basis Point Hungarian Central Bank Rate Cut
March 29, 2010
The Mayar Nemzeti Bank implemented its fourth straight 25-bp interest rate cut to 5.5% and reiterated the assertion that further cuts will be possible only if financial market risk perceptions allow such. Weak growth and the forecast of sub-target inflation next year are not sufficient conditions. Currency behavior is a litmus test for risk perceptions, […] More
Central Bank Watch
National Bank of Romania Implements an Eighth Rate Cut
March 29, 2010
Romania’s central bank monetary policy interest rate has been cut to 6.5% from 7.0%. This was the third monthly reduction in a row. Romania got a late start easing its stance because of stubbornly high interest rates and political risks. The benchmark rate had been at a lofty 10.25% from July 2008 into February 2009. […] More
New Overnight Developments Abroad - Daily Update
Dollar and Yen Weaker Versus European and Commodity-Sensitive Currencies
March 29, 2010
The dollar is unchanged against the yen. Both have fallen 1.0% against the Australian dollar, 0.8% relative to the kiwi, 0.6% against the euro, 0.5% against the Canadian dollar and sterling, and 0.4% relative to the Swiss franc. These moves were in continuing reaction to an accord among EU leaders to involve the IMF in […] More
Central Bank Watch
Rate Decisions in Russia and Colombia
March 26, 2010
Bank Rossii implemented another 25-basis point cut of its one- and seven-day repo rates, this time to 7.25%, and its refinancing rate to 8.25%. These were the twelfth cuts since April 2009. The last one had been announced February 19. As an oil exporter, Russia experienced a very severe economic contraction but has benefited from […] More
Foreign Exchange Insights and Next Week
Next Week
March 26, 2010
The coming week, which ends with Good Friday when numerous markets in North America, Europe, Asia, Australia and Latin America are closed, is packed with scheduled data. The week encompasses the cusp between the first and second quarters of 2010, fiscal yearend in Japan and the public-sector budget year of several countries. Europe shifts to […] More
Foreign Exchange Insights and Next Week
Currency Markets Wrapping up Quarter One of 2010
March 26, 2010
First-quarterend 2010 coincides with the Easter and Passover holiday, a time of thinning volume. 1Q10 was a good period for the dollar and a bad one for the euro and sterling. Dollar/yen marked time around the big figure of 90.0 as U.S.-Sino tensions over the yuan intensified. After steep losses against commodity-sensitive currencies in 2009, […] More
New Overnight Developments Abroad - Daily Update
Euro Rises After EU Leaders Agree on Aid to Greece With Role for IMF
March 26, 2010
The dollar fell by 0.9% against the euro and also lost 0.6% against the Swissy, 0.5% relative to sterling, and 0.3% against the kiwi and yen. The dollar rose 0.3% against the Canadian dollar and 0.2% versus the Australian dollar. Stocks showed a better tone in Asia but are only level in Europe. Equities gained […] More
Central Bank Watch
Czech National Bank: No Rate Change But More Dovish Bias
March 25, 2010
The two-week repo rate was left at 1.0% by a 4-2 vote. Unlike a unanimous decision on February 4 to keep policy stable, today’s meeting saw two policymakers dissent in favor of a 25-basis point cut because of a more benign inflation prognosis that envisages a sub-target CPI until March 2011. Consumer prices rose only […] More
Central Bank Watch
An Unexpected South African Rate Cut With a Lesson for the Euro
March 25, 2010
The South African Reserve Bank (SARB) cut its repo rate to 6.5% from 7.0% in a move that was not foreseen by analysts. Since the prior rate hike last August, which also was by 50 basis points, the central bank’s monetary policy committee had met four times — in September, October, November and January — […] More
