(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) — 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 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 […]
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