Forex News

Indonesia and South Korea have finalized operational guidelines for a new local currency transactions (LCT) framework slated to begin in 2024, marking a significant step towards stronger financial integration between the two nations. The initiative will enable direct trade transactions between the Indonesian Rupiah (IDR) and the South Korean Won (KRW), streamlining cross-border payments and reducing foreign exchange risks associated with trade. The LCT framework is a result of a memorandum of understanding signed in May by Bank Indonesia (BI) and the Bank of Korea (BOK). This agreement is set to foster economic stability within Asia's financial landscape by minimizing dependency on major currencies like the US dollar for bilateral...

Most Asian currencies fell on Monday, with the Chinese yuan among the worst performers after data pointed to a sustained deflationary trend in the country, while the dollar steadied in anticipation of a Federal Reserve meeting. The greenback saw some strength on Friday after a stronger-than-expected nonfarm payrolls reading, which dented expectations for an early interest rate cut by the Fed. The central bank is widely expected to keep rates on hold this week, although its signals for 2024 will be in close focus. The Chinese yuan lost 0.3% as data released over the weekend showed the country remained in disinflation for a second consecutive month, with consumer price index inflation falling at its fastest pace in three years. The...

TOKYO - The USD/JPY currency pair showcased resilience in Asian session on Wednesday, stabilizing above its three-month lows in the mid-147 range. This steadiness comes as US Treasury yields experience slight increases and the Bank of Japan's (BoJ) Deputy Governor Ryozo Himino maintains a dovish stance, emphasizing the continuation of easy monetary policies until Japan's price stability targets are achieved. The dollar's position was bolstered by a modest uptick in US Treasury yields, which often influence the currency's value. Despite this, the greenback displayed signs of weakness due to growing investor expectations of a potential Federal Reserve rate cut in early 2024. These expectations are fueled by a mix of economic reports that...

Most Asian currencies rose slightly on Wednesday as weak U.S. labor data spurred continued bets on early interest rate cuts by the Federal Reserve, helping investors look past persistent concerns over China’s economy. JOLTs data showed U.S. job openings declined in October, pushing up hopes for a prolonged cooling in the labor market which could limit the space the Fed has to keep rates higher for longer. The reading pulled down Treasury yields, and comes just a few days before closely-watched nonfarm payrolls data. Optimism over a less hawkish Fed helped most Asian currencies clock some gains on Wednesday. The Taiwan dollar and South Korean won rose 0.1% each, while the Japanese yen steadied after marking a sharp recovery against the...

Most Asian currencies steadied after strong gains on Monday, while the dollar nursed recent losses amid growing conviction that the Federal Reserve was done raising interest rates, and will begin cutting them in early-2024. The Japanese yen was one of the biggest beneficiaries of this notion, with the currency having recovered sharply from one-year lows in recent weeks on the prospect of easing pressure from higher U.S. interest rates. The yen steadied around 146.76 to the dollar, and was close to its strongest level since mid-September. Focus was also on an inflation reading from Japan's capital, due on Tuesday, for more potential cues on the Bank of Japan’s plans for monetary policy. The Chinese yuan was flat on Monday after...

• Asian currencies largely steadied on Friday, following a stellar rally through November. • Data from major economies provided mixed cues to markets. • The dollar rebounded from 3-½ month lows, after uncertainty over Federal Reserve's interest rate policy helped dollar index futures fall slightly in Asian trade. • Market awaiting Powell's speech at two separate events; Fed Chairman likely to maintain rhetoric that rates will remain higher for longer. Most Asian currencies kept to a tight range on Friday, while the dollar rebounded from 3-½ month lows in anticipation of more cues on interest rates from Federal Reserve Chair Jerome Powell. Regional currencies cooled slightly after a stellar rally through November, amid growing...

• Dollar gained against major currencies due to a combination of investor profit taking and Euro weakness, despite signs of a slowing U.S. economy. • The currency posted a 3% loss for the month, on pace for its worst monthly showing in a year. • The euro fell 0.7% against the dollar after Eurozone inflation dropped more than expected this month. • Initial claims for state unemployment benefits increased 7,000 to 218,000 in the latest week but activity data remains resilient. • Market suggests roughly 100 basis points of rate cuts by the end of 2024. NEW YORK-The dollar gained on Thursday as investors took profits on bets the currency would weaken further and shrugged off data showing signs the U.S. economy is slowing. Thursday's...

Most Asian currencies rose on Wednesday as less hawkish signals from Federal Reserve officials ramped up hopes for an early interest rate cut in 2024, which put the dollar near four-month lows. The New Zealand dollar was the best performer for the day, rallying nearly 1% after the Reserve Bank of New Zealand kept interest rates on hold, but flagged potential rate increases in 2024 as inflation remained sticky. The RBNZ hiked its forecast for peak interest rates in 2024- which saw analysts at Westpac now forecasting a 75% probability of an at least 25 basis point hike in the coming months. Asia FX up, dollar near 4-mth low after Fed officials talk pivot Broader Asian currencies advanced after Fed officials said in overnight comments...

ORLANDO, Florida (Reuters) -The rise in U.S. rate cut expectations for next year seems to have prompted hedge funds to cool their optimism on the dollar, potentially weakening a key plank of support for the currency in the coming months. The latest Commodity Futures Trading Commission (CFTC) data shows that funds cut their net long dollar position against a range of major and emerging currencies to $4.5 billion in the week ending Nov. 14 from $10 billion the week before. The $5.5 billion week-on-week swing is the biggest since July and second largest this year, and comes as interest rate futures markets had moved to price in up to 100 basis points of Fed rate cuts by the end of next year. That dovishness has been tempered in...

28.11.2023 - Reeling from a bear market last year, beaten-up investors decided to send more than $60 billion to exchange-traded funds focusing on dividends. Eleven months later, the trade is misfiring. Rather than give shelter in a stormy season, the largest dividend ETFs have been left behind by a tech-obsessed market whose biggest proxies have surged 15% or more. At the bottom of the leader board is the $18 billion iShares Select Dividend ETF (ticker DVY), down 5.4% on a total return basis after all-in bets on utilities and financial stocks fizzled. It’s the latest lesson on the dangers of market timing. Investors wanted exposure to companies with a history of paying out profits as a precaution amid the Federal Reserve’s most...

Most Asian currencies weakened slightly on Monday, while the dollar steadied as traders hunkered down before a string of key economic readings due this week. Mixed signals from China weighed on sentiment, as data showed a sustained, albeit narrowing decline in industrial profits. Top Chinese government officials called on Beijing to unlock more financial support for local businesses amid a slowing economic recovery. The yuan fell 0.1%, following a slightly weaker daily midpoint fix by the People’s Bank of China. Focus this week was on purchasing managers index (PMI) data for November, due on Thursday, for more cues on business activity. PMI readings for October had largely missed expectations. Still, Beijing has more stimulus...

Most Asian currencies kept to a tight range on Thursday as some signs of resilience in the U.S. labor market pushed up the dollar and brewed uncertainty over the path of interest rates. Regional trading volumes were low on account of market holidays in the U.S. and Japan, and are expected to remain muted for the remainder of the week. The Chinese yuan was among the better performers for the day, rising 0.2% to 7.1428 against the dollar after a substantially stronger-than-expected daily midpoint fix from the People’s Bank. Markets were also watching for any more stimulus measures from the government, as Beijing was seen preparing more monetary support for the beleaguered property sector. Focus is now on Chinese purchasing managers...

The USD/JPY currency pair experienced a pullback during Thursday's Asian trading session as market participants weighed the prospects of a hawkish turn in the Bank of Japan's (BoJ) policy against a backdrop of uncertainty regarding future Federal Reserve rate hikes. Despite a brief recovery from its monthly low on Tuesday, the pair failed to surpass the previous night's high due to these speculations. On Wednesday, the Japanese Yen initially weakened, reaching 149.75 against the US Dollar. However, it managed to regain some ground on Thursday. This recovery came despite strong US labor market data and minutes from the Federal Reserve that suggested a hawkish stance, both of which had previously bolstered the US Dollar. Contributing to...

Today's trading session highlighted a significant policy move by the People's Bank of China (PBOC) as it set a new benchmark rate for the onshore yuan (CNY), allowing a trading variance of up to 2% from this rate against the US dollar. This decision is a strategic signal from China's central bank, often indicating policy directions and adjustments. The previous session closed with the onshore yuan at 7.1650 to the dollar. The offshore yuan (CNH), which trades as USD/CNH in markets, continues to operate without any imposed trading boundaries, reflecting more market-driven dynamics compared to its onshore counterpart. The PBOC's actions are closely watched by investors as they can have broad implications for international trade and...

The GBP/USD currency pair continued its rise for the fourth day, buoyed by expectations around monetary policy on both sides of the Atlantic. The pound strengthened against the dollar, building on gains above its September high, as market sentiment turned cautious regarding further interest rate hikes by the Federal Reserve, according to minutes from the latest FOMC meeting. Investors are also closely monitoring upcoming economic announcements. They are awaiting the autumn statement from UK Finance Minister Jeremy Hunt in the House of Commons, along with key US economic data that could provide further direction for the currency markets. The recent uptrend in GBP/USD has been further reinforced by comments from Bank of England Governor...

LONDON/SINGAPORE (Reuters) -The yen rallied against the dollar for a fourth straight session on Tuesday as investors positioned for the possibility that the Bank of Japan will tighten monetary policy next year while the Federal Reserve loosens. The dollar hit its lowest level since mid-September at 147.16 yen and was last down 0.61% at 147.45. More broadly, the dollar index, a gauge of the greenback against six other currencies, fell to its lowest since late August at 103.17 and was last 0.13% weaker at 103.32. "There has been a lot of excitement, momentum is building, about the ability of the Bank of Japan to exit its ultra-loose monetary policy... possibly next year, ending negative interest rates," said Jane Foley, head of FX...

The U.S. dollar retreated once more in early European trade Tuesday, falling to a more than 2-month low ahead of the release of the minutes from the Federal Reserve’s last meeting. At 04:10 ET (09:10 GMT), the Dollar Index, which tracks the greenback against a basket of six other currencies, fell 0.2% to 103.135, dropping to levels last seen in late August. Dollar retreats ahead of Fed minutes The dollar index has fallen in seven of the last eight sessions as a string of soft labor market and inflation readings have seen traders speculate that the Federal Reserve has reached the end of its rate-hiking cycle, and cuts are the next logical step. Traders have priced in a 30% chance that the Fed could begin trimming rates by as soon as...

SINGAPORE - The International Monetary Fund (IMF) has thrown its weight behind Central Bank Digital Currencies (CBDCs), with Managing Director Kristalina Georgieva highlighting their potential to enhance financial inclusion and fintech development. Speaking at a Singapore event, Georgieva underscored that while current adoption levels are low, more than half of the countries worldwide are exploring the feasibility of CBDCs. Georgieva pointed out that CBDCs could address the costly distribution challenges of cash, especially in island nations, and improve financial resilience in mature economies. They also promise to expand access in regions where traditional banking services are limited. The IMF chief emphasized that countries should...

LONDON - The yuan and Australian dollar ascended to three-month peaks today, buoyed by strategic moves from China's central bank and a softening U.S. dollar, which hit a two-month low with the dollar index falling to 103.64. This comes as market consensus grows around the belief that U.S. interest rates may have topped out following recent weak economic indicators. The Federal Reserve's potential shift in monetary policy is under scrutiny, with futures signaling a 30% chance of rate reductions starting by March 2023, according to the CME FedWatch Tool. Amidst these developments, the euro and sterling also made gains against the U.S. dollar, reaching $1.0924 and $1.2475 respectively. The yen saw an uplift trading below 150 per dollar...

Most Asian currencies firmed sharply on Monday, tracking extended declines in the dollar amid increasing bets that the Federal Reserve was done raising interest rates, while promises of more Chinese stimulus measures also aided sentiment. The Chinese yuan surged 0.5% to its strongest level against the dollar since early-August. The biggest point of support for the yuan was a substantially stronger-than-expected daily midpoint fix by the People’s Bank of China. The PBOC held its benchmark loan prime rate near record lows on Monday, while also injecting about 80 billion yuan of liquidity into the economy. Separately, Chinese officials vowed more policy support for the country’s beleaguered property sector- a move that helped shore up...