(Bloomberg) — The Bank of Japan sent shock waves through markets after it unexpectedly revised its yield-curve-control policy, signaling that the developed world’s last holdout to rock-bottom interest rates is inching toward policy normalization. The yen soared almost 3% to 133.11 per dollar, while yields on 10-year bonds surged 20.5 basis points to the highest […]
Read More(Bloomberg) — The US dollar has erased more than half of this year’s gains amid growing expectations the Federal Reserve will temper its aggressive rate hikes, and as optimism grows over China’s reopening plans. The Bloomberg Dollar Spot Index has pared its 2022 advance to about 7%, after gaining as much as 16% earlier, as […]
Read More(Bloomberg) — The dollar has notched up its worst week since the early days of the Covid pandemic, but analysts think a long-running stampede for the greenback might not be over just yet. The Bloomberg Dollar Spot Index slumped around 3.5% this week, its biggest loss since March 2020. Investors had been trimming bets on […]
Read More(Bloomberg) — Gold surged as Japanese authorities intervened to prop up the yen, further driving down the greenback and increasing the appeal of the precious metal. Bullion surged as much as 1.8% on Friday, the most in more than two weeks, and was on pace for a weekly gain, while the dollar and Treasury yields […]
Read More(Bloomberg) — One of Wall Street’s most vocal bears is growling again, this time because of dollar strength. The “extreme” rally in the greenback over the past year typically comes alongside market stress or recession, or both, Michael J. Wilson, chief US equity strategist at Morgan Stanley, wrote in a report Sunday, noting how the […]
Read More(Bloomberg) — Software makers that have been battered amid this year’s stock slump were dealt another blow this week when Microsoft Corp. warned of even more headwinds coming down the pike. The world’s largest software maker cut its profit forecast for the current quarter on Thursday and blamed the surging US dollar for an upcoming […]
Read More(Bloomberg) — As the ruble’s official exchange rate parts ways with its value on the street, dollars are becoming hard to find. For Boris, a doctor based in Moscow, the search got so desperate that he pondered a high-tech, and seemingly improbable, black-market scheme that a friend was pushing. After interacting with a bot via […]
Read More(Bloomberg) — The soaring dollar is propelling the global economy deeper into a synchronized slowdown by driving up borrowing costs and stoking financial-market volatility — and there’s little respite on the horizon. A closely watched gauge of the greenback has risen 7% since January to a two-year high as the Federal Reserve embarks on an […]
Read More(Bloomberg) — Dethroning the dollar is easier said than done. That’s the conclusion of investors after Washington’s freeze of Russia’s dollar holdings created fresh impetus among central bankers to rethink the security of access to foreign-exchange reserves. The move fueled speculation that countries such as China could redouble efforts to unshackle itself from greenback-denominated financial […]
Read MoreThe exchange rate between Canada and the U.S. is often strongly correlated to the price of oil. Over the long run, when the price of oil rises, the value of the Canadian dollar (also called the loonie) also usually rises relative to that of the U.S. dollar. That correlation can be directly attributed to the way Canada earns […]
Read More(Bloomberg) — Sell the dollar and put money into assets such as emerging-market stocks and gold as the world’s economic recovery gathers steam, money managers say. A growing chorus of investors is betting the world’s reserve currency has reached a peak in a dramatic turnaround from a month ago when positioning in the greenback was […]
Read MoreThe U.S. dollar is offering up an early 2022 head scratcher: Why does the currency keep falling even as traders aggressively pencil in as many as four interest rate increases by the Federal Reserve this year as it scrambles to rein in red-hot inflation? The ICE U.S. Dollar Index DXY a measure of the currency […]
Read More(Bloomberg) — Traders are increasingly betting that the Federal Reserve’s cycle of interest-rate hikes, which hasn’t even gotten underway yet, will fizzle out sooner rather than later. Parts of the curve for eurodollar futures, which among other things are used by traders to bet on the direction of central bank policy, have been inverting over […]
Read MoreBetween 2003 and 2008, the value of the U.S. dollar fell compared to most major currencies. The depreciation accelerated during 2007 and 2008, impacting both domestic and international investments. Currently, the dollar is strong and is well above the average for the past 10 years. The dollar’s strength reflects a robust U.S. economy, low Federal Reserve […]
Read More