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☆ Bank of Japan makes surprise policy tweak
▼ + stars: | 2022-12-20 | by ( ) www.reuters.com time to read: +8 min

ATUSHI TAKEDA, CHIEF ECONOMIST, ITOCHU ECONOMIC RESEARCH, TOKYO:"Today's move reflects the BOJ's determination not to alter its yield cure control policy. CAROL KONG, CURRENCY STRATEGIST, COMMONWEALTH BANK OF AUSTRALIA, SYDNEY:"I think the move was certainly unexpected, to say the least. MOH SIONG SIM, CURRENCY STRATEGIST, BANK OF SINGAPORE:"They've widened the band, and I guess that came earlier than expected. CHRISTOPHER WONG, CURRENCY STRATEGIST, OCBC, SINGAPORE:"The timing of the policy tweak is a surprise, though we have been expecting the move to come in 2Q 2023. "The tweak may seem modest but is significant for a central bank that has held dovish for a long time.

☆ Bank of Japan reviews yield-curve control policy
▼ + stars: | 2022-12-20 | by ( ) www.reuters.com time to read: +4 min

Dec 20 (Reuters) - The Bank of Japan has slightly loosened the shackles on its 10-year yield target and said it will review its yield-curve control policy, surprising financial markets and sending the yen sharply higher. However, it is only a first step and yield-curve control (YCC) remains in place, as does negative rate strategy. CAROL KONG, CURRENCY STRATEGIST, COMMONWEALTH BANK OF AUSTRALIA, SYDNEY:"I think the move was certainly unexpected, to say the least. MOH SIONG SIM, CURRENCY STRATEGIST, BANK OF SINGAPORE:"They've widened the band, and I guess that came earlier than expected. CHRISTOPHER WONG, CURRENCY STRATEGIST, OCBC, SINGAPORE:"The timing of the policy tweak is a surprise, though we have been expecting the move to come in 2Q 2023.

☆ Yen gains on potential Japan govt move for more flexible inflation target
▼ + stars: | 2022-12-19 | by ( Rae Wee | ) www.reuters.com time to read: +3 min

[1/2] Banknotes of Japanese yen and U.S. dollar are seen in this illustration picture taken September 23, 2022. The yen was last 0.4% stronger at 136.19 per dollar, after jumping more than 0.5% to a high of 135.78 earlier in the session. The Japanese government will consider revising next year a joint statement it signed with the BOJ in 2013 that commits the central bank to meeting a 2% inflation target as soon as possible, sources told Reuters. That policy stance and the resulting interest rate differentials with the rest of the world have caused the yen to plunge more than 15% this year. A slew of central bank meetings last week saw the BoE, the U.S. Federal Reserve and the European Central Bank (ECB) each raising rates by 50 basis points, with the Fed and the ECB delivering hawkish messages and pledging more hikes ahead, even at the risk of hurting growth.

☆ Yen jumps on possible Japan govt move for more flexible inflation target
▼ + stars: | 2022-12-19 | by ( Rae Wee | ) www.reuters.com time to read: +3 min

[1/2] Banknotes of Japanese yen and U.S. dollar are seen in this illustration picture taken September 23, 2022. The yen was last 0.34% stronger at 136.24 versus the dollar, after having jumped more than 0.5% to a high of 135.78 earlier in the session. The Japanese government will consider revising next year a joint statement it signed with the BOJ in 2013 that commits the central bank to meeting a 2% inflation target as soon as possible, sources told Reuters. That policy stance and the resulting interest rate differentials with the rest of the world have caused the yen to plunge more than 15% this year. A slew of central bank meetings last week saw the BoE, the U.S. Federal Reserve and the European Central Bank (ECB) each raising rates by 50 basis points, with the Fed and the ECB delivering hawkish messages and pledging more hikes ahead, even at the risk of hurting growth.

☆ Yen rises on report of Japan govt move for more flexible inflation target
▼ + stars: | 2022-12-19 | by ( Rae Wee | ) www.reuters.com time to read: +3 min

[1/2] Banknotes of Japanese yen and U.S. dollar are seen in this illustration picture taken September 23, 2022. The yen was last 0.6% stronger at 135.91 per dollar, after having touched a high of 135.80 earlier in the session. Prime Minister Fumio Kishida is aiming to make the BOJ's 2% inflation target a more flexible goal by revising its decade-old joint statement with the central bank, Kyodo news agency reported on Saturday. The current statement commits the BOJ to achieving its inflation target "at the earliest date possible", and the BOJ has steadfastly stuck to its dovish monetary policy. A slew of central bank meetings last week saw the BoE, the Federal Reserve and the European Central Bank (ECB) each raising rates by 50 basis points, with the Fed and the ECB delivering hawkish messages and pledging more hikes ahead, even at the risk of hurting growth.

☆ Dollar falters as investors challenge Fed's hawkishness
▼ + stars: | 2022-12-15 | by ( Rae Wee | ) www.reuters.com time to read: +3 min

The kiwi fell 0.05% to $0.6456, though it was similarly not far off the six-month peak of $0.6513 it hit this week. The 50 bp increase marked a downshift after four consecutive 75 basis point rate hikes. Against a basket of currencies, the U.S. dollar index was last 0.02% higher at 103.68, after touching a six-month low in the previous session. Fed funds futures also show that markets are expecting U.S. rates to peak just under 5% by May next year. Elsewhere, the Aussie was last 0.05% lower at $0.6860, while the dollar slipped 0.06% against the Japanese yen to 135.40.

☆ Dollar eases, but inflation outlook stays high on investors' radar
▼ + stars: | 2022-12-12 | by ( Amanda Cooper | ) www.reuters.com time to read: +4 min

The U.S. Federal Reserve, the European Central Bank, the Bank of England and the Swiss National Bank will all release rate decisions. Friday's data that showed U.S. producer prices rose 7.4% year-on-year in November, compared with forecasts for a rise of 7.2%, has reminded investors of how sticky inflation is proving. Consumer inflation data for November lands on Tuesday and is expected to show a 6.1% increase in the core reading, which excludes food and energy prices, down from 6.3% in October. Against the yen the dollar rose 0.2% to 136.78. The offshore yuan was mostly flat at 6.977 per dollar, further pressured by worries over a potential spike in COVID cases as China eases its stringent COVID-19 restrictions.

☆ Dollar seesaws as inflation outlook stays high on investors' radar
▼ + stars: | 2022-12-12 | by ( Amanda Cooper | ) www.reuters.com time to read: +4 min

The U.S. Federal Reserve, the European Central Bank, the Bank of England and the Swiss National Bank will all release rate decisions. Friday's data that showed U.S. producer prices rose 7.4% year-on-year in November, compared with forecasts for a rise of 7.2%, has reminded investors of how sticky inflation is proving. Consumer inflation data for November lands on Tuesday and is expected to show a 6.1% increase in the core reading, which excludes food and energy prices, down from 6.3% in October. Against the yen the dollar rose 0.2% to 136.87. Reporting by Rae Wee; Editing by Lincoln Feast, Bradley Perrett and Christian SchmollingerOur Standards: The Thomson Reuters Trust Principles.

☆ Dollar gains as inflation pressures persist; eyes on c.bank meetings
▼ + stars: | 2022-12-12 | by ( Rae Wee | ) www.reuters.com time to read: +3 min

Against a basket of currencies, the U.S. dollar index eked out a 0.12% gain at 105.18. Traders were also kept on edge in the run up to key risk events this week, including U.S. inflation data and a slew of major central bank meetings. The Bank of England and the European Central Bank (ECB) will also meet this week, and each is likewise expected to deliver a 50 bp rate hike. Ahead of the FOMC meeting, November's U.S. inflation figures are due on Tuesday, with economists expecting core annual inflation of 6.1%. "The market reaction to U.S. inflation surprises has been asymmetric so far in 2022, with downside surprises having a larger effect than upside ones," said analysts at Barclays.

☆ Dollar rises as inflation pressures persist; FOMC meeting in focus
▼ + stars: | 2022-12-12 | by ( Rae Wee | ) www.reuters.com time to read: +3 min

Traders were also kept on edge in the run up to key risk events this week, including a slew of major central bank meetings. The Bank of England and the European Central Bank (ECB) also meet this week, and are likewise expected to each deliver a 50 bp rate hike. Elsewhere, the dollar rose 0.12% against the Japanese yen to 136.73, and against a basket of currencies, the U.S. dollar index eked out a 0.04% gain at 105.09. Ahead of the FOMC meeting, November's U.S. inflation figures are due on Tuesday, with economists expecting core inflation to rise 6.1% year-on-year. "The market reaction to U.S. inflation surprises has been asymmetric so far in 2022, with downside surprises having a larger effect than upside ones," said analysts at Barclays.

☆ Dollar tries to find footing as recession worries simmer
▼ + stars: | 2022-12-08 | by ( Kevin Buckland | ) www.reuters.com time to read: +3 min

With Japan's own long-term yields pegged near zero by the central bank, the yen slid as long-term U.S. Treasury yields clambored off three-month lows. Meanwhile, the yuan hovered close to an almost three-month high after China revealed a loosening of stifling COVID restrictions. Fed policy makers will have the benefit of seeing the latest consumer inflation data a day before the decision. "The FOMC may step down the pace of its rate hikes to 50bp next week, but unless inflation decelerates consistently, upside risks to FOMC policy remain." Long-term Treasury yields plunged to an almost three-month low of 3.402% overnight, but bounced back to around 3.46% in Tokyo.

☆ Dollar struggles as recession worries simmer
▼ + stars: | 2022-12-08 | by ( Kevin Buckland | ) www.reuters.com time to read: +3 min

TOKYO, Dec 8 (Reuters) - The U.S. dollar remained weak on Thursday after sliding against major peers overnight for the first time this week as investors fretted about the potential for recession in the United States. The yuan hovered near an almost three-month high after China revealed a loosening of stifling COVID restrictions. Fed policy makers will have the benefit of seeing the latest consumer inflation data a day before the decision. "The FOMC may step down the pace of its rate hikes to 50bp next week, but unless inflation decelerates consistently, upside risks to FOMC policy remain." Long-term Treasury yields plunged to an almost three-month low overnight, and remained depressed in Tokyo trading at around 3.45%.

[1/2] Banknotes of Chinese yuan and U.S. dollar are seen in this illustration picture taken September 29, 2022. Yet the euro was flat against the dollar at $1.048, after falling 0.2% in the previous session. In Asia, China's yuan firmed as the government announced measures that marked a sharp change to its tough, three-year-old zero-COVID policy that has battered its economy and sparked historic protests. "Anticipation of further easing of measures in China should continue to favour RMB (and) RMB-linked assets." "China's reopening will be bumpy in coming months and economic data will likely get worse before it gets better."

☆ Dollar in demand as growth outlook darkens, yuan up as China eases curbs
▼ + stars: | 2022-12-07 | by ( Rae Wee | ) www.reuters.com time to read: +3 min

Against the dollar, sterling was last 0.03% lower at $1.2131, after falling 0.4% overnight. It's part of our baseline," said Joseph Capurso, head of international and sustainable economics at Commonwealth Bank of Australia. Against a basket of currencies, the U.S. dollar index edged 0.07% higher to 105.62. The onshore yuan was last more than 0.2% higher at 6.9771 per dollar. "Anticipation of further easing of measures in China should continue to favor RMB (and) RMB-linked assets."

☆ Dollar edges up as darkening growth outlook hurts sentiment
▼ + stars: | 2022-12-07 | by ( Rae Wee | ) www.reuters.com time to read: +3 min

SINGAPORE, Dec 7 (Reuters) - The dollar crept higher on Wednesday as top executives from the biggest U.S. banks warned of an impending recession, which dampened risk appetite and kept the greenback supported. Against the dollar, sterling fell 0.4% overnight, and was last 0.05% lower at $1.2128. It's part of our baseline," said Joseph Capurso, head of international and sustainable economics at Commonwealth Bank of Australia. Against a basket of currencies, the U.S. dollar index was last 0.05% higher at 105.60. The offshore yuan was last marginally higher at 6.9845 per dollar, having been supported by an easing of China's strictest COVID-19 restrictions.

☆ Australia's Big Four banks pass c.bank rate hike to home loan customers
▼ + stars: | 2022-12-06 | by ( ) www.reuters.com time to read: +1 min

Dec 6 (Reuters) - All of Australia's "big four" banks said on Tuesday they will raise their home loan rates by a quarter-point, passing on the central bank's eighth rate hike in as many months to their customers in full. Earlier on Tuesday, the Reserve Bank of Australia lifted its cash rate by 25 basis points to a 10-year high of 3.1%, and reiterated that further policy tightening would be needed to contain inflation. The top four lenders, the Commonwealth Bank of Australia (CBA.AX), National Australia Bank (NAB.AX) and Australia and New Zealand Banking Group's (ANZ.AX) will hike their rates from the end of next week, while Westpac Banking Corp's (WBC.AX) hike will be effective December 20, the banks said in separate statements. However, heightened borrowing costs could impact credit demand, housing market, employment and economic growth, posing as challenges to the lenders. Reporting by Rishav Chatterjee and Echha Jain in Bengaluru Editing by Vinay Dwivedi and Nivedita BhattacharjeeOur Standards: The Thomson Reuters Trust Principles.

It had dipped to 104.1 for the first time since June 28 as traders continued to rein in bets of aggressive Fed tightening. "The dollar really kicked butt across the board," said Bart Wakabayashi, branch manager at State Street in Tokyo. The Aussie dollar rose 0.21% to $0.6713, clawing back some of a 1.4% overnight tumble. In recent days though, RBA policy has taken a back seat to optimism about an easing of strangling COVID-19 restrictions in China, a top trading partner. "We expect the RBA to change its forward guidance in a subtle but significant way from 'expects to increase interest rates further' to 'likely to increase interest rates further' or 'willing to increase interest rates further,' (which) would indicate the RBA considers it is at or at least near the end of its tightening cycle," pushing the Aussie lower.

☆ Dollar wobbles as inflation ebbs, eye on jobs data
▼ + stars: | 2022-12-02 | by ( Ankur Banerjee | ) www.reuters.com time to read: +2 min

Investors now turn their attention to nonfarm payrolls data on Friday for clues about how rate hikes have affected the labour market. Futures traders are now pricing for the Fed's benchmark rate to peak at 4.87% in May, up from 3.83% now. Meanwhile, the dollar was 0.05% lower at 135.25 yen , having slipped as low as 135.045 yen earlier - the lowest since Aug. 18. The euro down 0.1% to $1.0512, after gaining 1% overnight, while sterling was last trading at $1.2237, down 0.13% on the day. Reporting by Ankur Banerjee in Singapore; Editing by Raju GopalakrishnanOur Standards: The Thomson Reuters Trust Principles.

☆ Dollar sinks to 3-month low vs yen as Powell says Fed to go slow
▼ + stars: | 2022-12-01 | by ( Kevin Buckland | ) www.reuters.com time to read: +2 min

TOKYO, Dec 1 (Reuters) - The dollar tumbled to a three-month low versus the yen on Thursday as traders keyed on comments by Federal Reserve Chair Jerome Powell that interest rate hikes could be scaled back "as soon as December." He added however that controling inflation "will require holding policy at a restrictive level for some time." Markets are currently pricing 91% odds that the Fed slows to a 50 basis point rate increase on Dec. 14, and just 9% probability of another 75 basis point bump. In November, the dollar dropped 7.15% versus the yen, its worst month in 14 years, as investors positioned for a Fed pivot. The dollar index - which measures the currency against six major peers including the yen and euro - extended Wednesday's more than 1% drop into Thursday, dipping as low as 105.69.

☆ Dollar slips from one-week high on China hopes as Powell speech looms
▼ + stars: | 2022-11-30 | by ( Kevin Buckland | ) www.reuters.com time to read: +3 min

The risk-sensitive New Zealand and Aussie dollars rose, while the offshore Chinese yuan hovered near a one-week peak. "But there's a back and forth between dollar selling and dollar strength, because earlier in the week, all we could talk about was hawkish Fedspeak," he added. The euro ticked up 0.11% to $1.0339, lifting from a one-week low reached earlier on Wednesday at $1.0319. The New Zealand dollar strengthened 0.29% to $0.6218 while the Aussie adding 0.1% to $0.66935. "Expectations for an end to China's zero‑covid policy in coming months, combined with more targeted restrictions in the meantime, can provide support to CNH, AUD and NZD."

☆ Australian banking system cushioned for imminent climate change-related risks - regulator
▼ + stars: | 2022-11-30 | by ( ) www.reuters.com time to read: +2 min

Nov 30 (Reuters) - Potential economic downturns caused by climate change could pose risks to the loan books of Australia's top five banks without resulting in any severe stress to the system and the economy, a risk study conducted by the country's banking regulator showed. With global focus sharply pivoting towards climate change, banks have come under increased scrutiny for their ties with fossil fuel projects, prompting them to set goals to cut emissions and raise investments in clean energy projects. These banks have "predicted they would adjust their risk appetite and lending practices, such as cutting back on high loan-to-valuation lending and reducing exposure to higher risk regions and industries", the regulator said. APRA will now consider how the assessment could be applied to other regulated industries and climate-related challenges, it said. ($1 = 1.4948 Australian dollars)Reporting by Sameer Manekar and Tejaswi Marthi in Bengaluru; editing by Uttaresh.V and Subhranshu SahuOur Standards: The Thomson Reuters Trust Principles.

☆ Dollar near one-week high as traders prepare for Powell, payrolls tests
▼ + stars: | 2022-11-30 | by ( Kevin Buckland | ) www.reuters.com time to read: +3 min

China's offshore yuan traded near a one-week high as traders returned to wagering on a reopening from strangling COVID-19 curbs. The dollar slipped 0.07% to 138.60 yen , as the pair continued to consolidate following a bounce from a three-month low of 137.50 on Monday. The euro ticked up 0.15% to $1.03435, lifting from a one-week low reached earlier on Wednesday at $1.0319. The Aussie rose 0.11% to $0.66945, consolidating in the middle of its range of the past couple of weeks. Optimism about a China reopening was balanced against an easing in Australian inflation, reducing the pressure for Reserve Bank rate hikes, and weak Chinese purchasing manager surveys.

☆ Dollar near one-week high as traders prepare for Powell speech, payrolls tests
▼ + stars: | 2022-11-30 | by ( ) www.cnbc.com time to read: +3 min

China's offshore yuan traded near a one-week high as traders returned to wagering on a reopening from strangling Covid-19 curbs. The dollar slipped 0.07% to 138.60 yen , as the pair continued to consolidate following a bounce from a three-month low of 137.50 on Monday. The euro ticked up 0.15% to $1.03435, lifting from a one-week low reached earlier on Wednesday at $1.0319. The Aussie rose 0.11% to $0.66945, consolidating in the middle of its range of the past couple of weeks. Optimism about a China reopening was balanced against an easing in Australian inflation, reducing the pressure for Reserve Bank rate hikes, and weak Chinese purchasing manager surveys.

☆ Australia court dismisses customer fees lawsuit against CBA
▼ + stars: | 2022-11-29 | by ( ) www.reuters.com time to read: +2 min

Nov 29 (Reuters) - The Australian Federal Court has dismissed proceedings initiated by the country's securities regulator against top lender Commonwealth Bank of Australia (CBA.AX) over alleged incorrect charging of monthly fees to customers, the regulator said on Tuesday. The court, however, found that the bank had not breached its general obligation to ensure that financial services were provided efficiently. CBA in a statement acknowledged the court order as well as "errors" in charging monthly account fees to some customers. "We confirm that CBA has completed the customer remediation program in relation to the issues in the proceedings," the bank said. In September, another ASIC proceeding against CBA over allegations of improperly collecting commissions was dismissed by the federal court, dealing a blow to consumer advocates seeking tougher regulations.

☆ Dollar holds firm as China's COVID-related worries weigh
▼ + stars: | 2022-11-29 | by ( Harish Sridharan | ) www.reuters.com time to read: +4 min

The euro , which surged to a five-month peak of $1.0497 overnight, later reversed those gains following a rebound in the U.S. dollar. Against a basket of currencies, the U.S. dollar index was marginally lower by 0.1% at 106.50, after rising 0.5% overnight. The greenback had extended gains after St. Louis Fed President James Bullard said overnight that the Fed needs to raise interest rates quite a bit further. The U.S. central bank is widely expected to hike rates by an additional 50 basis points when it meets on Dec. 13-14. The offshore yuan reversed some of its losses in the previous session and was about 0.4% higher at 7.2136 per dollar.

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