Across-the-Board Declines in the Dollar

April 25, 2013

The dollar has fallen 1.1% against sterling, 0.8% versus the kiwi, 0.5% relative to the yen,  0.4% against the euro and Australian dollar, 0.3% vis-a-vis the loonie and Swiss franc and 0.1% against the Chinese yuan.

Holiday closures today are in Australia and New Zealand for Anzac Day, Italy for Liberation Day, and Portugal for Freedom Day.

Share prices rose 1.1% in India, 1.0% in Hong Kong 0.8% in South Korea, 0.6% in Japan, and 0.5% in Singapore, but in Europe, equities have declined by 1.4% in Spain, 0.3% in France and 0.1% in Britain.  The German Dax is up 0.2% so far.

The 10-year British gilt yield climbed three basis points, while the 10-year Japanese JGB slid by a basis points.  German bunds are steady.

Gold continued recovering with a 1.6% advance to $1445.90 per ounce.  Oil rose 0.4% to $91.80 per barrel.

Energy demand in Britain’s cold winter helped enable U.K. GDP to avoid consecutive quarters of contraction.  Growth of 0.3% in the first quarter (1.2% annualized) reversed the 0.3% drop in 4Q12 and exceeded expectations.  The four-quarter change in GDP, 0.6%, remained positive as well.  While construction plunged 2.5% last quarter, services went up 0.6% and enhanced GDP by 0.47 percentage points.  Production industries also expanded, rising 0.2%. 

Policymakers at the Filipino central bank, Bangko Sentral ng Pilipinas, left the overnight lending and borrowing rates at 5.5% and 3.5% as expected, but they also decided on a third straight 50-basis point cut of the Special Deposit Account interest rate, which becomes 2.0%.

South Korean GDP increased 0.9% on quarter in 1Q, the best gain in two years, but on-year growth remained comparatively low at 1.5%.

Japanese stock and bond transactions generated a JPY 663 billion net capital inflow in the week of April 19, which was about a third as much as the JPY 1.88 trillion inflow in the previous week.

Hong Kong’s trade deficit widened 44.6% on month to HKD 49.2 billion in March, thanks to stronger exports.  The Filipino trade deficit in February of $967 million was 35% greater than January’s shortfall.

Producer price inflation accelerated to 5.7% in South Africa last month from 5.4% in the year to February.

Swedish producer prices fell by 4.4% on year in March after a 3.7% drop in the year to February.  The PPI was 1.1% lower on month.

Unemployment in Spain increased to 27.16% last quarter from 26% in the final quarter of 2012.  German construction orders were 1.8% lower than a year before in February.

U.S. weekly jobless insurance claims and the Kansas City monthly manufacturing index get released today.  Treasury Secretary Lew testifies about the proposed budget.

Copyright 2013, Larry Greenberg.  All rights reserved.  No secondary distribution without express permission.

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