Bank of Korea

Several Central Bank Policy Meetings Elsewhere on This U.S. Thanksgiving Day

November 24, 2022

With the U.S. observing its quintessentially most unique holiday, the dollar continued to back off from recent highs, dropping 0.3% on a weighted DXY basisĀ  overnight and extending its cumulative decline from peak to 7.8%. The dollar lost 0.9% against the yen today and 0.6% versus sterling but just 0.1% relative to the euro. Prices […] More

Bank of Korea’s Base Rate Increased by 50 Basis Points

October 13, 2022

the Bank of Korea raised its base rate by 50 basis points to 3.0%. The size of that hike is double those of the prior seven increases of 25 basis points that began in August 2021. The vote behind today’s action was 5-2, with two dissents favoring another 25 basis point increase. Officials are sensitive […] More

Dollar Hits New 21st Century High against the Yen, Falls Back 0.8% versus Sterling, and Otherwise Generally Stable

October 12, 2022

The yen touched a new 24-year low of 146.67 per dollar overnight. The Bank of Japan’s continuing negative short-term interest rate stands apart from other central bank policies. Direct currency market intervention can do only so much to limit the yen’s weakness. Japanese data reported this Wednesday showed a 4.3% on-year increase in machine tool […] More

Another South Korean Central Bank Rate Hike and More to Come

August 25, 2022

The Bank of Korea‘s policy interest rate was raised by 25 basis points to 2.5%. This was the seventh normalizing hike over the past year from a starting rate level of 0.50%. All of the moves except the prior one in July of 50 basis points have been by a quarter of a percentage point. […] More

New Zealand and South Korean Central Bank Interest Rates Lifted by 50 Basis Points

July 13, 2022

Central Banks in New Zealand and South Korea had hiked interest rates by 50 basis points today. The Reserve Bank of New Zealand’s Official Cash Rate was raised to 2.50%, its highest level since early 2016 and up from a pandemic low of 0.25%. Three increases of 25 basis points have now been followed by […] More

South Korea’s Fifth 25-Basis Point Central Bank Interest Rate Hike since August

May 26, 2022

The Bank of Korea’s seven-day bank rate was raised again by 25 basis points. It was the fifth such increase since last August, the third one of 2022, and the second straight monthly meeting in which officials tightened. At 1.75%, the interest rate is back to the level prevailing between July and October of 2019. […] More

Thursday’s Focus Turns to Central Banks

May 26, 2022

The dollar slid overnight by 0.2% against the euro, yen, sterling, and Mexican peso and by 0.1% versus the Swiss franc and on a weighted basis. Alternatively the U.S. currency advanced 0.6% relative to the Chinese yuan, 0.3% relative to the Russian ruble, and 0.2% vis-a-vis the Turkish lira. The kiwi, Aussie dollar and Canadian […] More

Bank of Korea

April 14, 2022

Officials at the Bank of Korea today authorized the fourth 25-basis point hike of South Korea’s repo rate since last August. Analysts were not expecting an increase, and none had been made at the previous meeting in February. The new rate level of 1.5% is it’s highest since August 2019. CPI inflation in South Korea […] More

Amid Rising Inflation, Some Central Banks React and Others Do Not

April 14, 2022

The weighted DXY dollar index slid 0.3% so far today and is 0.9% below its year-to-date high hit in intraday trading yesterday. Losses of 0.2-0.3% today have occurred against the euro, yen, kiwi, loonie and sterling, while marginal upticks have occurred versus the Swiss franc and Australian dollar. Stock markets closed up 1.2% in Japan […] More

Stampede Into Safe Havens After Russia Invades Ukraine

February 24, 2022

Overnight advances of the U.S. dollar amount to 6.0% against the Russian ruble, 3.3% relative to the Ukraine hryvnia, 2.8% against the Turkish lira, 2.4% versus the Swedish krona and Brazilian real, 1.8% against the Mexican peso, 1.5% versus sterling, 1.4% vis-a-vis the euro, Korean won and New Zealand dollar, 1.2% relative to the Chinese […] More