New Overnight Developments Abroad - Daily Update
Bank of England Report Opens Door Wider to an Earlier Rate Hike
November 13, 2013
Sterling rose as high as $1.6004 following release of the central bank’s quarterly inflation report and shows a net gain of 0.4% from Tuesday’s close. The dollar otherwise climbed 0.5% against the kiwi and 0.1% versus the euro and Swiss franc. The dollar has softened 0.2% against the yen and 0.1% relative to the Australian […] More
Central Bank Watch
Indonesia Gets Fifth Central Bank Interest Rate Hike Since June
November 12, 2013
The Board of Governors of Bank Indonesia hiked the BI interest rate to 7.5% from 7.25% in a move that surprised many analysts. This increased followed hikes of 25 basis points in June, 50 bps in July and August, 25 bps in September but no change in October. The key interest rate has thus climbed […] More
New Overnight Developments Abroad - Daily Update
Sinking Confidence amid Disinflation
November 12, 2013
The dollar strengthened overnight by 0.7% against sterling, 0.5% versus the yen and kiwi, 0.4% relative to the Australian dollar, 0.2% against the loonie and 0.1% vis-a-vis the euro and Swiss franc. The yuan remains unchanged. Pacific Rim equities varied widely. Japan’s Nikkei jumped 2.2%, and stocks also gained 1.0% in china and 0.9% in […] More
New Overnight Developments Abroad - Daily Update
Depressed Yen
November 11, 2013
The yen at 99.20 is 1.0% weaker than the dollar, which otherwise shows dips of 0.2% against the Swiss franc and euro and 0.1% versus the kiwi. The dollar is up 0.2% relative to the Australian dollar and 0.1% vis-a-vis sterling but unchanged against the loonie and yuan. Stocks overnight rose 1.4% in Hong Kong […] More
Foreign Exchange Insights and Next Week
Next Week
November 8, 2013
On the central banking beat, Bank Indonesia and the Bank of Korea hold interest rate policy meetings next week. Janet Yellen’s senate confirmation hearings to be the next Federal Reserve Chairperson begins on Thursday. Other Fed officials speaking in public during the week include Bernanke, Plosser, Kocherlakota, Lockhart, Fisher, and Pianalto. Bank of England Governor […] More
Central Bank Watch
National Bank of Serbia Extends Run of Rate Cuts
November 8, 2013
A reduction of 50 basis points in Serbia’s one-week repo rate to 10.0% brings the cumulative drop since May to 175 basis points. A released statement predicts inflation dropping soon to the low end of the target range also observes a diminished current account deficit, lower imported agricultural prices, planned fiscal consolidation, lower aggregate demand, […] More
Uncategorized
Central Reserve Bank of Peru
November 8, 2013
The policy interest rate of Peru’s central bank was cut late Thursday for the first time since August 2009 and changed for the first time since a 25-basis point hike in May 2011. The rate level now becomes 4.0%, 25 basis points less than previously. Analysts did not anticipate this change, which in a statement […] More
New Overnight Developments Abroad - Daily Update
Steadier Currency Landscape
November 8, 2013
The euro sank yesterday to as low as $1.3294 after the surprise ECB rate cut, but the lows didn’t hold. Key currency relationships are steady today. The euro is at $1.3419 and unchanged from Thursday’s close. The dollar is also unchanged against the loonie, Australian dollar, sterling and yuan. The greenback has edged up 0.1% […] More
Foreign Exchange Insights and Next Week
The Race for Weaker Currencies
November 7, 2013
Comparisons to conditions during the Great Depression were made often back in 2008 and 2009, less so for a couple of years thereafter, but are popping up again. One of the notable dissimilarities at first concerned commercial policy in the two periods. Beggar-thy-neighbor tactics were common in the 1930s. Saddled with anemic domestic demand, governments […] More
Central Bank Watch
Czech National Bank
November 7, 2013
As in Hong Kong, Singapore, and Switzerland, Czech monetary policy henceforth will be subordinated to an exchange rate policy mandate. Some central banks like the Fed, Bank of Japan, and Bank of England have used asset buying to stimulate monetary policy once their interest rates are virtually at zero. Monetary officials in the Czech Republic […] More
