currency

  • Asian shares steady but Fed disappointment hits bonds

    By Stella Qiu SYDNEY (Reuters) –Asian shares steadied from a recent sell-off on Wednesday although investors remain wary after the world’s most powerful central banker had a change of heart on U.S. rate cuts this year, pushing Treasury yields to new five-month highs. Europe is set for a subdued open, with EUROSTOXX 50 futures flat on the day. U.S. stock futures slipped 0.1% after Wall Street finished the day lower. The dollar’s surprising resilience this year is causing discomfort in Asia’s currency markets. The beleaguered yen is plumbing fresh 34-year lows on an almost daily basis, the Chinese yuan is pinned near five-month troughs and Vietnam’s dong is at record lows. The New Zealand dollar gained 0.4% to $0.5902 after first-quarter inflation data showed domestically driven price pressures were surprisingly strong, adding to signs that the last mile to get inflation back to target could be bumpy. On Wednesday, MSCI’s broadest index of Asia-Pacific shares outside Japan rose 0.1%, after plunging more than 4% in the past three sessions. Japan’s Nikkei, however, dropped 0.8% to the lowest in two months….

    free stock signals April 16, 2024
  • Bank of Japan may focus less on inflation when formulating policy

    The Bank of Japan is moving toward a more discretionary approach to monetary policy, people familiar with the matter said. Three people familiar with the matter said that the mere forecast that inflation will remain at the target level of around 2% until early 2027 does not indicate that interest rates will be raised in the near future.

    US stock news April 15, 2024
  • The strong US dollar has started the “harvest” mode again: emerging markets have started a “currency defense war”!

    “The U.S. dollar is our currency, but it’s your trouble” – As the U.S. dollar has been rising against the backdrop of recent declines in expectations of a Federal Reserve interest rate cut, this famous quote from former U.S. Treasury Secretary Connally more than half a century ago seems to be coming back again. It has become a major problem for many policymakers in emerging markets… Many investors in the foreign exchange market have recently been paying attention to whether the Japanese government will intervene to prevent the yen, which has already fallen below the 153 mark, from weakening further. But in fact, in emerging markets, many economies face exchange rate pressures no less than Japan. Some locals said the foreign exchange market has become a key battleground, as the dollar’s recent surge has put tremendous pressure on an increasing number of emerging economies to intervene. Market data shows that as investors continue to buy gold and the US dollar, the MSCI Emerging Markets Index weakened for the third consecutive day on Friday, approaching the low of the year. Almost…

    US stock news April 15, 2024