A soaring U.S. dollar is wreaking havoc in markets. Analysts say it will be hard for stocks to find their footing until the currency cools down.
The UK economy is once again under a microscope with a new prime minister in office and the passing of Queen Elizabeth II.
U.S. dollar positioning was derived from net contracts of International Monetary Market speculators in the Japanese yen, euro, British pound, Swiss franc, and Canadian and Australian dollars. CFTC data also showed Japanese yen net shorts increased in the latest week to 81,280 contracts, the largest since early June. Among the major currencies, the yen has struggled the most against the dollar as the Bank of Japan remains the only central bank that is not in a tightening mode.
(Bloomberg) -- The pound plunged by the most since March 2020 and hit the lowest in 37 years against the dollar, as the UK government unveiled a fiscal stimulus package that threatens to fuel inflation and stoke the nation’s ballooning debt.Most Read from BloombergBank of England Says Paper Banknotes Only Good for One More WeekLiz Truss’s Historic Gamble With the UK Economy Is Already UnravelingLeaked Study Shows Exxon, Partners Overspent by $138 BillionRisk Assets Crushed With Few Signs Drama I
The U.S. dollar is on track Friday for its biggest weekly advance since March 2020 as the Federal Reserve's third jumbo interest-rate hike and Chair Jerome Powell's hawkish outlook helped send real yields sharply higher. The ICE U.S. Dollar Index , a gauge of the dollar's strength against a basket of its rivals, has risen 3.1% this week to 113.16, the highest level for the index since at least 2002. The move in the index was largely driven by weakness in the euro , which is the biggest constitue
Who gains the most from the biggest tax cuts UK has seen since 1972?
'It makes me very sorry to say, but I think the UK is behaving a bit like an emerging market turning itself into a submerging market,' said former US Treasury secretary Larry Summers.
Russia's native currency gained 4.5% against the dollar, hitting 56.7 and climbing to a high not seen since August 25.
The Canadian dollar weakened to its lowest level in more than two years against its U.S. counterpart on Friday as the sell-off in global equity markets continued and domestic data showed retail sales falling more than expected in July. Stocks hit two-year lows and the U.S. dollar scaled a two-decade high against a basket of major currencies as investors feared bigger interest rate rises are on their way to tame inflation. Canadian retail sales fell by 2.5% in July from June on lower sales at gasoline stations, as well as clothing and clothing accessories stores, Statistics Canada said.
* Canadian dollar weakens 0.3% against the greenback * Touches its weakest since July 2020 at 1.3551 * Retail sales fall 2.5% in July * 10-year yield slides 8.2 basis points TORONTO, Sept 23 (Reuters) - The Canadian dollar weakened to its lowest level in more than two years against its U.S. counterpart on Friday as the sell-off in global equity markets continued and domestic data showed retail sales falling more than expected in July. The loonie was trading 0.3% lower at 1.3525 to the greenback, or 73.94 U.S. cents, after touching its weakest since July 2020 at 1.3551. Stocks hit two-year lows and the U.S. dollar scaled a two-decade high against a basket of major currencies as investors feared bigger interest rate rises are on their way to tame inflation.
China's currency weakened against the greenback and neared the lower limit of a key daily trading band.
Stocks hit two-year lows on Friday, the dollar scaled a two-decade high and bonds sold off again as investors feared bigger interest rate rises are on their way to tame inflation, while UK assets plunged after huge debt-financed tax cuts were announced. UK assets were already weaker but extended their fall after Britain's new finance minister unveiled an historic tax-cutting agenda that will see government borrowing soar. UK bond yields were set for their biggest daily rise in decades, and money markets were pricing in Bank of England interest rates of as much as 5% by May next year.
Here's when the new UK tax rates kick in.
(Bloomberg) -- The dollar’s march to record highs is sweeping aside other currencies, with the euro and pound hitting fresh multi-decade lows on Friday.Most Read from BloombergBank of England Says Paper Banknotes Only Good for One More WeekJapan to Restore Visa-Free Travel From Oct. 11 as Covid Pandemic Recedes Risk Assets Swept Up in Rout as ‘Fear Gauge’ Soars: Markets WrapSouth Korea President Caught on Hot Mic Insulting US CongressUnless Rents Rise, Housing Is Set Up for an Epic CrashThe comm
Sterling tumbled against a rallying dollar following the mini-budget on Friday.
(Bloomberg) -- Nations are being forced to go it alone in erecting defenses against the relentless strength of the almighty greenback, with no sign that governments are willing to act in concert.Most Read from BloombergBank of England Says Paper Banknotes Only Good for One More WeekJapan to Restore Visa-Free Travel From Oct. 11 as Covid Pandemic Recedes South Korea President Caught on Hot Mic Insulting US CongressUnless Rents Rise, Housing Is Set Up for an Epic CrashStock Rout Leaves S&P 500 Hov
London's bluechip index tumbled below 7,000 after Kwasi Kwarteng's mini-budget, despite hopes tax cuts will boost growth.
* Peso outperforms Asian FX * Rupee hits record low * Higher UST yields, dollar weigh on Asian assets By Riya Sharma Sept 23 (Reuters) - Emerging Asian currencies broadly fell on Friday against a stronger dollar, buoyed by a hawkish U.S. Federal Reserve, but the Philippine peso outperformed. While central banks in Taiwan, Indonesia and the Philippines all increased interest rates on Thursday, the rupiah and the Taiwan dollar were down 0.1% and 0.2%, respectively, with only the peso managing to eke out gains. Bank Indonesia (BI) increased rates by more than expected on Thursday, Taiwan's central bank hiked its policy rate for the third time this year and the Philippine central bank delivered its fifth rate rise of 2022, hiking half a percentage point, as widely expected.
The yen was heading on Friday to its first weekly gain in more than a month after Japanese authorities intervened in markets to support the yen for the first time since 1998, while a towering dollar kept other currencies pinned near multi-year lows. The yen was up about 0.1% at 142.22 per dollar in Asia, after a more than 1% rally in the previous session on news that Japan had bought yen to defend the battered currency, although trading was thin on Friday with the country's markets closed for a public holiday. The intervention, conducted late in Asia trading hours on Thursday, came after the Bank of Japan stuck with its ultra-low rate policy, which prompted a drop in the yen past 145 per dollar to a 24-year low.
By Geoffrey Smith
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