New Overnight Developments Abroad - Daily Update
Markets Focused on Jackson Hole
August 27, 2010
Currencies are marking time ahead of Fed Chairman’s 10:00 EDT address at the Jackson Hole Symposium. The dollar is unchanged against the euro and up 0.1% relative to sterling, the Canadian dollar and the Swiss franc. The yen settled back 0.4% but remains pricey at 84.7 per dollar. The greenback slid 0.3% against the kiwi […] More
Deeper Analysis
Now and Yen
August 26, 2010
Official concern about yen strength is palpable and mounting by the day. Not since the last intervention in March 2004 has the possibility of government sales of yen been considered so carefully and so publicly. This week the yen touched a record high of 105.44 per euro, and the currency’s high of 83.59 per dollar […] More
Central Bank Watch
Philippines’ Central Bank Rates Unchanged
August 26, 2010
The overnight borrowing rate of Bangko Sentral ng Pilipinas will remain at 4.0% as analysts expected. A fairly sanguine statement released today by officials called monetary policy settings, which were last changed in July 2009, appropriate because of contained inflation and anchored inflation expectations. The CPI is expected to stay confined to its target ranges […] More
New Overnight Developments Abroad - Daily Update
Firmer Equities, Softer Dollar but Not Against the Yen
August 26, 2010
Stocks in the Pacific Rim advanced by 0.8% in Australia and Malaysia, 0.7% in Japan, and 0.3% in China and India. In Europe, the Paris Cac and British Ftse are 0.7% stronger, and the German Dax has edged 0.4% higher. Dollar/yen is steady at 84.60. Together the two currencies lost 0.5% against the euro, sterling, […] More
Deeper Analysis
Fading Thrill of Global Growth
August 25, 2010
Economic prospects can change in a hurry. Revised growth projections released last month by the International Monetary Fund were quite respectable. The IMF staff was looking for a second straight year of 4%+ global growth in 2011. Emerging and developing nations would expand almost 7%, three times faster than the advanced nations. Within the latter […] More
Central Bank Watch
Thailand Gets a Second 25-Basis Point Monetary Tightening
August 25, 2010
The Bank of Thailand’s one-day repo rate was raised to 1.75% following a 25-basis point initial increase to 1.50% announced July 14. Officials released a statement noting that second quarter GDP growth of 0.2% from 1Q and 9% from 2Q09 had been faster than expected. Sectors that could have been hurt by earlier political unrest […] More
New Overnight Developments Abroad - Daily Update
Japan’s Finance Minister Elevates Yen Warning
August 25, 2010
The yen is 0.5% lower after Finance Minister Noda warned of “appropriate action” against strengthening yen. Overnight yen highs were at 83.88 per dollar and 105.86 per euro prior to the remark. The dollar otherwise is unchanged against the euro, Canadian dollar and sterling, off 0.1% relative to the Swiss franc and Australian dollar and […] More
Central Bank Watch
Hungary and Poland Monetary Policy Decisions: No Changes
August 24, 2010
Yesterday the Magyar Nemzeti Bank announced no change in Hungary’s central bank Base Rate of 5.25%. Fourteen reductions totaling 625 basis points between November 2008 and April 2010 had been implemented earlier. There have been no hikes yet, but some informal consideration of such appears to have been entertained, since a new statement from officials […] More
Central Bank Watch
Israeli Monetary Policy
August 24, 2010
The Bank of Israel yesterday announced no change in the 1.75% Policy Rate, which had previously been raised by 25 basis points each in August, November and December of 2009 and March and July of this year. A statement from the Bank called policy still “expansionary” and spoke of an uneven normalization process that now […] More
Central Bank Watch
A 100-Basis Point Icelandic Rate Cut on August 18th
August 24, 2010
A full percentage point reduction of the Icelandic benchmark interest rate to 7.0% last week was twice as much as analysts were anticipating and justified as follows: Lower inflation, lower inflation expectations, a stronger króna, and the prospect of more rapid disinflation than previously expected provide the scope for a larger interest rate reduction than […] More
