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☆ Dollar stabilises near seven-month lows
▼ + stars: | 2023-01-10 | by ( Alun John | ) www.reuters.com time to read: +3 min

The euro was at $1.0736, little changed on the day, trading just below its seven-month high of 1.07605 hit Monday. The China-sensitive Australian dollar spiked at a more than four-month peak of $0.6950 in the previous session. The offshore yuan last traded at 6.7889 per dollar, after hitting its strongest in five months of 6.7590 earlier in the session. The dollar also steadied against the yen trading up 0.2% at 132.2 yen. The Japanese currency has been broadly strengthening after the Bank of Japan's (BOJ) surprise tweak to its yield curve policy late last year.

The euro was at $1.0731, little changed on the day, trading just below its seven-month high of 1.07605 hit Monday. The China-sensitive Australian dollar spiked at a more than four-month peak of $0.6950 in the previous session. The offshore yuan last traded at 6.7878 per dollar, after hitting its strongest in five months of 6.7590 earlier in the session. The dollar also steadied against the Japanese yen at 131.7 yen. The currency has been broadly strengthening firm after the Bank of Japan's (BOJ) surprise tweak to its yield curve policy late last year.

☆ Dollar sluggish as Fed rate hike fears ebb; China reopening boosts optimism
▼ + stars: | 2023-01-10 | by ( Rae Wee | ) www.reuters.com time to read: +3 min

The euro was last 0.07% higher at $1.0739, holding near the previous session's seven-month peak of $1.07605 that came on the back of the dollar's decline. Sterling slid 0.08% to $1.21705, after similarly hitting a three-week top of $1.2209 on Monday and ending the session 0.73% higher. Against a basket of currencies, the U.S. dollar index fell 0.03% to 103.14, after tumbling 0.7% and touching a seven-month low of 102.93 in the previous session. The offshore yuan last bought 6.7755 per dollar, after hitting a near five-month top of 6.7590 earlier in the session. Brazil's real snapped its three-day winning run in the previous session and last stood at 5.2546 per dollar after supporters of former President Jair Bolsonaro stormed the capital.

☆ Dollar languishes as Fed rate hike fears recede; China reopening boosts optimism
▼ + stars: | 2023-01-10 | by ( Rae Wee | ) www.reuters.com time to read: +3 min

The dollar's decline pushed the euro to a seven-month peak of $1.07605 in the previous session. Sterling slipped 0.03% to $1.2177, after similarly hitting a three-week top of $1.2209 on Monday and ending the session 0.73% higher. Against a basket of currencies, the U.S. dollar index edged 0.04% higher to 103.21, after tumbling 0.7% and touching a seven-month low of 102.93 in the previous session. The offshore yuan last bought 6.7757 per dollar, and was edging towards the previous session's near five-month top of 6.7665 per dollar. "Hedge funds managers have turned slightly bearish USD following the full reopening in China," said Tareck Horchani, head of head of prime brokerage dealing at Maybank Securities.

The increase, which was the fastest pace in four decades, will likely underpin market expectations the Bank of Japan (BOJ) may phase out its massive stimulus by tweaking its yield control policy. The rise in the Tokyo core consumer price index (CPI), which excludes fresh food but includes fuel, exceeded a median market forecast of 3.8% and a 3.6% gain seen in November, government data showed on Tuesday. The last time Tokyo inflation was faster was April 1982, when the core CPI was 4.2% higher than a year before. The rise in Tokyo CPI heightens the chance nationwide consumer inflation likely stayed above the BOJ's 2% target in December. But Japan's long-term interest rates have crept up since the BOJ stunned markets last month by widening the band around its 10-year bond yield target, a move investors saw as a prelude to a future rate hike.

☆ Dollar tentative as investors assess rate-hike path
▼ + stars: | 2023-01-09 | by ( ) www.reuters.com time to read: +3 min

That led the dollar index , which measures the U.S. dollar against six major currencies, 1.15% lower on Friday. On Monday, the index, which gained 8% in 2022, was 0.01% higher at 103.720. Analysts, however, point to the still tight labour market that is likely to concern Fed officials. With the next Fed meeting scheduled at the start of next month, investors will focus on the consumer price index data due on Thursday. The Australian dollar rose 0.17% versus the U.S. currency to $0.689, while the kiwi gained 0.02% to $0.635.

☆ Japan Kishida vows to debate govt, BOJ roles with new central bank head
▼ + stars: | 2023-01-08 | by ( Leika Kihara | ) www.reuters.com time to read: +3 min

The remark heightens the chance the government may revise its a decade-long blueprint with the central bank that focuses on beating deflation, a move that would lay the groundwork for an exit from the BOJ's ultra-loose monetary policy. "Under the new BOJ governor, we must discuss the relationship between the government and the BOJ," said Kishida, who has authority to choose the central bank head. Markets are rife with speculation the BOJ could move further to phase out Kuroda's massive stimulus by tweaking its yield control policy under a new central bank governor. "In guiding monetary policy, policymakers must have a view on the outlook for the economy. There needs to be careful communication and dialogue with markets," Kishida said, when asked whether the BOJ needs to tweak it ultra-loose policy.

☆ Take Five: Welcome to 2023
▼ + stars: | 2023-01-06 | by ( ) www.reuters.com time to read: +5 min

LONDON, Jan 6 (Reuters) - A potential shift by the world's most dovish major central bank, inflation pressures abating, a turn in the economic outlook and oil markets suffering their biggest tumble in decades: Welcome to 2023! 1/ EARNINGS AND INFLATIONThe week ahead brings a critical read into two key themes for Wall Street in 2023: the health of corporate profits and inflation. With crude oil volatility soaring, 2023 might be anything but plain sailing for producers and consumers alike. Barclays expects the UK economy to keep contracting until the end of the third quarter of 2023. It takes time for declines in market prices to filter through into household bills, but signs are positive for cash-strapped consumers and businesses.

☆ Asia stocks hit 4-month high on reopening of Chinese economy
▼ + stars: | 2023-01-05 | by ( Tom Westbrook | ) www.reuters.com time to read: +4 min

MSCI's broadest index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS) rose 1% to touch a four-month high in morning trade. China has abruptly dropped ultra-strict curbs on travel and activity, unleashing the virus on the nation's 1.4 billion people. The yuan rose about 0.2% to 6.8750 on Thursday. China has partially eased an unofficial ban on Australian coal imports and the Australian dollar made a three-week high overnight just below $0.69. In Europe, unseasonally warm weather has disappointed skiers but been a boon for a euro basking in falling gas prices.

"Price rises are broadening more than initially expected, a trend that could continue if wages rise enough," one of the sources said. The BOJ has traditionally used core consumer inflation, which excludes the effect of fresh food but includes energy costs, as a key gauge in producing forecasts and guiding policy. In fresh quarterly projections due this month, the BOJ would probably raise its core-core inflation forecasts for the current fiscal year ending in March and fiscal 2023, they said. The BOJ will issue the quarterly forecasts after a two-day policy meeting that ends on Jan. 18. With public discontent over rising prices hurting approval ratings, Prime Minister Fumio Kishida on Wednesday urged firms to offer wage hikes exceeding the rate of inflation.

☆ BOJ's Kuroda aims to keep policy loose to meet price, wage growth goals
▼ + stars: | 2023-01-04 | by ( Yoshifumi Takemoto | ) www.reuters.com time to read: +1 min

TOKYO, Jan 4 (Reuters) - Bank of Japan Governor Haruhiko Kuroda said on Wednesday the central bank would maintain its loose monetary policy in order to sustain inflation at its 2% target along with wage growth. Kuroda's comments at a New Year gathering of the Japanese bankers' association counter lingering market speculation the BOJ may join the world's major central banks in tightening money supply to fight decade-high inflation. The world's third-largest economy would grow firmly and stably this year backed by accommodative monetary conditions although uncertainties such as inflation and the COVID-19 pandemic remain, Kuroda said. Adding to the uncertainty, the yen rebounded sharply on speculation the BOJ may start to turn away from its ultra-loose monetary policy after it widened the yield cap range on 10-year Japanese government bonds (JGBs) last month. Reporting by Yoshifumi Takemoto; Writing by Tetsushi Kajimoto; Editing by Jacqueline WongOur Standards: The Thomson Reuters Trust Principles.

☆ Morning Bid: The year of the yen?
▼ + stars: | 2023-01-03 | by ( ) www.reuters.com time to read: +3 min

A look at the day ahead in U.S. and global markets from Dhara Ranasinghe, Editor, Financial Markets EMEA, Thomson Reuters. And the yen, for starters, is intent on leaving a dismal 2022 behind. Yet, on the second trading day of the new year Japan's currency is already scaling seven-months highs. All this leaves the yen - you guessed it - as one of the most favored trades early in 2023. MUFG says that even after the recent rebound, the yen is still "deeply undervalued," which leaves scope for further gains.

☆ Dollar steady as investors await economic data, Fed minutes
▼ + stars: | 2023-01-03 | by ( ) www.reuters.com time to read: +2 min

SINGAPORE, Jan 3 (Reuters) - The U.S. dollar was mostly flat on Tuesday as investors awaited slew of economic data this week along with minutes of the last Federal Reserve meeting that will shed light on the Central bank's thinking around interest rates and inflation. The index rose 8% last year in its biggest annual jump since 2015 on the back of the Fed raising interest rates to tackle inflation. The dollar is likely to consolidate as "market activity gradually picks up this week," said Christopher Wong, currency strategist at OCBC Bank in Singapore. After delivering four consecutive 75 basis points hikes, the U.S. Central Bank raised interest rates by 50 basis points last month. The minutes of the December meeting is due to be released on Wednesday, with investors looking for cues on what path the Fed is likely to take in 2023.

☆ Asia shares skid on China woes, yen hits 6-month high
▼ + stars: | 2023-01-03 | by ( Wayne Cole | ) www.reuters.com time to read: +4 min

MSCI's broadest index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS) fell another 1.3%, having lost a fifth of its value last year. The cautious mood spread to Wall Street, with S&P 500 futures off 0.4% and Nasdaq futures 0.6% lower. EUROSTOXX 50 futures fell 1.4% and FTSE futures 0.8%. The policy shift boosted the yen across the board, with the dollar losing 5% in December and the euro 2.3%. Brent lost 74 cents to $85.17 a barrel, while U.S. crude fell 62 cents to $79.64 per barrel.

☆ Asia shares weigh China risks, yen hits 6-month high
▼ + stars: | 2023-01-03 | by ( Wayne Cole | ) www.reuters.com time to read: +4 min

MSCI's broadest index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS) edged up 0.5%, having been down more than 1.0% in choppy early trading. Nikkei futures were trading at 25,750 compared with the last close for the cash index (.N225) of 26,094. Wall Street was in a guarded mood, with S&P 500 futures and Nasdaq futures up 0.1%. Such a move at its next policy meeting on Jan. 17-18 would only add to speculation of an end to ultra-loose policy, which has essentially acted as a floor for bond yields globally. The policy shift boosted the yen across the board, with the dollar losing 5% in December and the euro 2.3%.

☆ BOJ considering raising inflation forecasts to near 2% target -Nikkei
▼ + stars: | 2022-12-31 | by ( Reuters Staff | ) www.reuters.com time to read: +2 min

FILE PHOTO: A man walks past Bank of Japan's headquarters in Tokyo, Japan, June 17, 2022. REUTERS/Kim Kyung-Hoon/(Reuters) -The Bank of Japan (BOJ) is considering raising its inflation forecasts in January to show price growth close to its 2% target in fiscal 2023 and 2024, Nikkei reported on Saturday. Upgrades to the BOJ’s inflation forecast would further fuel such speculation as Governor Haruhiko Kuroda has said the central bank could discuss the exit if achievement of its 2% inflation target in tandem with wage hikes comes into sight. The previous forecasts released in October were around 2.9%, 1.6% and 1.6%, respectively. The BOJ will release the latest quarterly growth and price outlook after its next policy meeting on Jan. 17-18.

☆ Bank of Japan may raise inflation forecasts to near 2% target, report says
▼ + stars: | 2022-12-31 | by ( ) www.cnbc.com time to read: +1 min

People walk the popular shopping area of Ueno in Tokyo on December 23, 2022. The Bank of Japan (BOJ) is considering raising its inflation forecasts in January to show price growth close to its 2% target in fiscal 2023 and 2024, Nikkei reported on Saturday. Upgrades to the BOJ's inflation forecast would further fuel such speculation as Governor Haruhiko Kuroda has said the central bank could discuss the exit if achievement of its 2% inflation target in tandem with wage hikes comes into sight. The previous forecasts released in October were around 2.9%, 1.6% and 1.6%, respectively. Japan's core consumer prices excluding fresh food items rose 3.7% in November, the highest since 1981, government data showed last week.

☆ Japan’s Banks Get a Shot in the Arm
▼ + stars: | 2022-12-30 | by ( Jacky Wong | ) www.wsj.com time to read: 1 min

A 0.25 percentage point tweak to Japan’s “yield curve control” interest-rate policy has lit a fire under the country’s financial stocks. A sustained shift in monetary policy could add further fuel to the rally. Shares of Japanese banks and insurers have surged since the Bank of Japan unexpectedly raised its effective cap on 10-year government bond yields to 0.5% from 0.25% about two weeks ago. The BOJ has long intervened in the bond market to keep yields of that tenor within a specific trading range around zero.

☆ Japan's biggest banks to raise housing loan rates after BOJ's policy tweak
▼ + stars: | 2022-12-30 | by ( ) www.reuters.com time to read: +1 min

TOKYO, Dec 30 (Reuters) - Japan's three biggest banks said on Friday they would raise interest rates for housing loans for next month, reflecting the Bank of Japan's tweak in its ultra-loose policy. Mitsubishi UFJ Bank, the main banking unit of Mitsubishi UFJ Financial Group (8306.T), will raise the rate by 0.18 percentage point to 3.7%. Each bank has special loan programs for selected customers so their rates will be lower, with Sumitomo Mitsui charging 1.14%, Mizuho 1.60% and Mitsubishi UFJ 1.05%. Japan's central bank surprised the market last week by raising the cap on 10-year bond yield to 0.5% from 0.25%. Reporting by Ritsuko Shimizu; Writing by Junko Fujita; Editing by Bradley PerrettOur Standards: The Thomson Reuters Trust Principles.

☆ Dollar powers through, eyes best year since 2015
▼ + stars: | 2022-12-30 | by ( Rae Wee | ) www.reuters.com time to read: +4 min

The U.S. dollar index , which measures the greenback against a basket of currencies, has surged more than 8% this year, the most since 2015. "I expect the king dollar to lose its crown and the dollar to make a more decisive turn by the middle of next year," Bank of Singapore currency strategist Moh Siong Sim said. It has fallen more than 13% year to date, its worst performance since 2013. The single currency had dipped below parity against the dollar earlier this year for the first time in almost two decades. The kiwi , which has fallen more than 7% year to date, the worst since 2015, slipped 0.31% to $0.6330.

☆ Dollar eyes best year since 2015; Fed rate path, China reopening to set tone
▼ + stars: | 2022-12-30 | by ( Rae Wee | ) www.reuters.com time to read: +4 min

The U.S. dollar index , which measures the greenback against a basket of currencies, has surged more than 8% this year, the most since 2015. But expectations that the central bank may not have to raise rates as high as previously feared have caused the greenback to unwind its towering rally. Conversely, an ultra-dovish Bank of Japan in the face of a hawkish Fed, has spelled pain for the Japanese yen . Policymakers from the European Central Bank and the Bank of England have signalled more rate hikes to come next year, in a bid to tame inflation even at the risk of hurting their economies. "The issue is whether the rapid reopening (in China) triggers fresh waves in some countries or regions, and that may lead to fresh restrictions.

☆ Ex-BOJ deputy Yamaguchi emerging as next c.bank head contender -Sankei
▼ + stars: | 2022-12-29 | by ( ) www.reuters.com time to read: +2 min

TOKYO, Dec 29 (Reuters) - Former Bank of Japan Deputy Governor Hirohide Yamaguchi, a vocal critic of Governor Haruhiko Kuroda's stimulus programme, is emerging as a strong candidate to become next head of the central bank, the Sankei newspaper reported on Thursday. Yamaguchi had been considered a less likely candidate compared with deputy governor Masayoshi Amamiya and former deputy Hiroshi Nakaso. But Yamaguchi is attracting more attention as a strong candidate as Kishida's administration distances itself from Abenomics, the Sankei said, adding that Kishida's choice of new BOJ governor will become clear as early as next month. A career central banker with deep experience in monetary policy drafting, Yamaguchi served as deputy governor for five years until 2013. Since retiring from the BOJ, Yamaguchi has warned of the rising cost of prolonged easing and criticised Kuroda's stimulus as relying too much on the view that central banks can influence public perception with monetary policy.

☆ Japan Nov factory output falls on weakening global demand
▼ + stars: | 2022-12-28 | by ( Kantaro Komiya | ) www.reuters.com time to read: +3 min

"The impacts of overseas rate hikes, slower growth and weak capital expenditure demand are gradually reaching Japan," said Masato Koike, economist at Sompo Institute Plus. "Production inevitably remains weak for October-December and highly likely stalls furthermore as the global economy hasn't hit its worst." That marked the third monthly decrease in Japanese production and followed a revised 3.2% fall in October and 1.7% contraction in September. Output of general machinery slipped 7.9%, while that of production machinery decreased 5.7%, driving down the overall index in November. METI cut its assessment of industrial output for a second straight month, saying "production is weakening".

☆ Asian shares slip as investors gauge China reopening policy
▼ + stars: | 2022-12-28 | by ( Ankur Banerjee | ) www.reuters.com time to read: +3 min

SINGAPORE, Dec 28 (Reuters) - Asian equities were subdued on Wednesday, while the dollar held firm, with investors looking for direction after China took further steps towards reopening its COVID-battered economy. The yield on 10-year Treasury notes was down 0.9 basis points at 3.849%, hovering around the five-week high of 3.862% it touched in the previous session. The yield on the 30-year Treasury bond was down 2.3 basis points at 3.920%, while the two-year U.S. Treasury yield, which typically moves in step with interest rate expectations, was down 1.9 basis points at 4.349%. "The spring salary negotiation next year is the most important to watch for further meaningful policy change for the Bank of Japan." The dollar index , which measures the safe-haven greenback against six major currencies, rose 0.077%.

☆ Dollar hits one-week high vs yen, drops against pound
▼ + stars: | 2022-12-28 | by ( ) www.cnbc.com time to read: +3 min

The dollar touched a one-week high against the yen on Wednesday, boosted by a jump in Treasury yields and investor expectations for a rebound in Chinese growth as COVID-19 curbs loosen. Meanwhile, the pound headed towards its largest one-day rise against the dollar in two weeks as Britain's markets reopened after a long weekend. That day, the yen staged its biggest one-day rally against the dollar in 24 years, closing 3.8% higher, as traders speculated about an eventual unwinding of stimulus. The dollar was up 0.2% against the Japanese yen at 133.785. The Australian dollar rose 1% against its U.S. namesake to $0.680, while the New Zealand dollar strengthened by 1.1% to $0.634.

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