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☆ Sterling dips as market trims BoE rate hike bets, yen scrabbles off 32-yr low
▼ + stars: | 2022-10-18 | by ( Joice Alves | ) www.reuters.com time to read: +4 min

The battered Japanese yen traded near a 32-year trough to the dollar at 149 yen, putting the major psychological barrier of 150 in focus. ING expects now a 75 basis-point rate hike in November rather a full-point move expected before the fiscal policy U-turn, Smith added. The euro was volatile weakened against the dollar following German investor sentiment data, which albeit less pessimistic than expected, still painted a bleak picture of Europe's biggest economy. The dollar index which measures its performance against six major currencies, including sterling, the euro and the yen - was last down 0.1% at 112.00. Britain's policy U-turn saw the risk-sensitive New Zealand dollar surge more than 1%, already lifted by hotter-than-expected consumer inflation data, boosting bets for further rate hikes.

☆ Sterling pauses after UK fiscal U-turn rally, yen scrabbles off 32-year low
▼ + stars: | 2022-10-18 | by ( Joice Alves | ) www.reuters.com time to read: +4 min

British pound banknote is displayed on U.S. Dollar banknotes in this illustration taken, February 14, 2022. Register now for FREE unlimited access to Reuters.com RegisterAfter Monday's almost 2% rally, sterling was down 0.1% against the U.S. dollar to $1.1340 at 0815 GMT. Improved risk sentiment has bolstered the euro to $0.9872, its highest since Oct. 6, with a fall in energy prices also supporting the single currency. "Euro/dollar went under parity in late August largely driven by the negative terms of trade shock of higher energy prices. The UK news saw the risk-sensitive New Zealand dollar , already lifted by hotter-than-expected consumer inflation data, extend its surge, up 1% to $0.5691.

☆ Australia's c.bank says to hike rates more, can keep pace with global peers
▼ + stars: | 2022-10-18 | by ( ) www.reuters.com time to read: +2 min

SYDNEY, Oct 18 (Reuters) - The Reserve Bank of Australia expects to raise interest rates further over the coming months, the deputy governor said on Tuesday, noting that the bank can achieve a similar tightening in rates to its global peers through smaller hikes. "This is a particular advantage in uncertain times, as it allows more frequent evaluation of the evidence and recalibration if necessary," said Bullock. Register now for FREE unlimited access to Reuters.com Register"It also means that if we increase interest rates at every meeting, we can potentially move much faster than overseas central banks." "The Board expects to increase interest rates further over coming months. But the pace and timing will be determined by the economic data," Bullock said.

☆ While global central banks take on jumbo hikes, Australia took a smaller step
▼ + stars: | 2022-10-18 | by ( Jihye Lee | ) www.cnbc.com time to read: +3 min

It marked the bank's sixth consecutive hike in its tightening cycle to tame global inflation rates. Prospects of continued "jumbo" interest rate hikes persist as central banks around the world attempt to tackle global inflation. In the end, the central bank's board members said they "recognized the benefits of a smaller increase." "It also means that if we increase interest rates at every meeting, we can potentially move much faster than overseas central banks. Or alternatively, we can achieve a similar rise in interest rates with smaller increments," she said.

☆ Dollar tests 32-year peak to yen; Aussie, kiwi rise on rate bets
▼ + stars: | 2022-10-18 | by ( ) www.cnbc.com time to read: +4 min

The New Zealand dollar surged after a hotter-than-expected consumer price report boosted expectations for further policy tightening. The U.S. currency bought 148.855 yen after pushing to 149.10 late in the overnight session for the first time since August 1990. Absent the intervention by Tokyo, Kadota said the dollar should already be above 150 yen based on interest-rate differentials and other market factors. A red-hot U.S. consumer inflation report last week boosted bets for even more aggressive U.S. policy tightening, with markets currently priced for 75 basis point hikes in November and December. New Zealand's kiwi jumped 0.57% to $0.567 after a report showed consumer inflation continued to hover near three-decade highs in the third quarter.

☆ Australia monthly CPI measure slows slightly to 6.8% y/y in August
▼ + stars: | 2022-09-29 | by ( Wayne Cole | ) www.reuters.com time to read: +2 min

The Australian Bureau of Statistics (ABS) reported its monthly indicator of consumer prices (CPI) rose 6.8% in August from a year earlier. In contrast, annual inflation for fruit and vegetables more than doubled to 18.6% in August as flooding hit the farm sector. Utility prices have also been rising but are only included in the quarterly CPI release. This is only the second release of the monthly CPI indicator, with the September data due in late October and then at roughly four-week intervals. The monthly CPI only has around two thirds of the price observations of the quarterly series and is more volatile, somewhat limiting its usefulness.

☆ Australia's central bank has equity wiped out by billions in bond losses
▼ + stars: | 2022-09-21 | by ( ) www.cnbc.com time to read: +1 min

A man walking past the Reserve Bank of Australia in the central business district of Sydney on June 7, 2022. Australia's central bank on Friday warned inflation was heading to three-decade highs requiring further hikes in interest rates that would slow growth sharply. Australia's central bank on Wednesday said its equity had been wiped out by losses suffered on pandemic-era bond buying, but its ability to create money meant it was not insolvent and would continue as normal. The losses eclipsed underlying earnings of A$8.2 billion and left the central bank with an accounting loss of A$36.7 billion. "The negative equity position will, therefore, not affect the ability of the Reserve Bank to do its job."

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