Bank of Korea
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
Another Rate Hike at the Bank of Korea
January 14, 2022
Officials at the Bank of Korea are the latest to hike a central bank interest rate in this young year of 2022, lifting such by an as-expected 25 basis points to 1.25%. This third such advance since August 2021 reverses all of the early 2020 rate reduction and returns the rate to its pre-pandemic level. […] More
Equities Tumbling Anew as Inflation and Interest Rates Climb
January 14, 2022
The dollar overnight rose 0.1% against the euro and on a weighted basis, held unchanged against the Swiss franc and sterling and fell 0.3% versus the yen. Share prices dropped 1.3% in Japan, 1.4% in South Korea, 1.1% in Australia, and 1.0% in South Korea. The German Dax and Paris Cac show losses so far […] More
Data Mix of Elevated Inflation Despite Moderating Growth
October 12, 2021
Today’s menu of price data around the world revealed The highest rate of Japanese domestic producer price inflation (6.3%) since September 2008 and also a larger 31.3% year-on-year leap in import prices. The steepest on-year jump in German wholesale prices (13.2%) since June 1974. As then, energy played a prominent role in the spike. The […] More
Watching China and Central Banks
July 15, 2021
The U.S. dollar edged slightly higher overnight, with gains of 0.4% against the Australian and New Zealand currencies, 0.3% versus the euro, and 0.1% relative to the Swiss franc, loonie, and DXY weighted index. Alternatively, the dollar slipped 0.2% against the Chinese yuan and 0.1% versus sterling, while dollar/yen stayed steady. Share prices had climbed […] More
Markets Looking for Clues to How Central Banks React to Spike in Inflation
May 27, 2021
In analyzing foreign exchange movement, the calendar year divides into three seasons, with the middle summer period –when trading volume oftentimes thins and dollar movements can be erratic and unrepresentative at times — lying between the U.S. Memorial Day and Labor Day weekends. The dollar is approaching the end of the winter-spring with a trivial […] More
Spotlight on Central Banks, Fresh Data and, as Always, Covid
April 15, 2021
The uncertain delayed roll-out of the J&J one-shot Covid vaccine is creating consternation, especially in light of high rates of new cases in many places. The National Bank of Ukraine’s policy interest rate was raised a full percentage point to 7.5%. This was the second straight tightening and twice the size of the initial 50-basis […] More
Many Data Released Today as Inflation fears Continue
February 25, 2021
Shortly before today’s release of U.S. economic data, 10-year sovereign debt yields were showing considerable increases (for example, 8 basis points in the United States and Italy, 12 bps in Canada, 6 bps in Spain and the U.K., 5 bps in Germany and France, and 2 basis points in Japan). The trade-weighted dollar had eased […] More
