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☆ Markets are rebounding after Monday's massive meltdown, making rate decisions harder for the Fed
▼ + stars: | 2024-08-06 | by ( Huileng Tan | ) www.businessinsider.com time to read: +4 min

Read previewMarkets are rebounding after Monday's meltdown, injecting challenges into central banks' interest-rate decisions. The market volatility is due to a mix of factors including poor earnings results from several tech giants and a weak July payroll report. AdvertisementSome analysts are speculating that the BOJ rate cut was because it was under political pressure to shore up the floundering yen, Bloomberg reported on Monday. Related storiesGoing forward, the BOJ could have a harder time with the timing of its rate hike decisions. Talks of an emergency rate cutThe market selloff has also made the Fed's rate hike timing harder.

Persons: —, Kospi, Taiwan's Taiex, Kyle Rodda, It's, Vishnu Varathan, Mizuho Bank's, Capital.com's Rodda Organizations: Service, Business, Bank of Japan, US Federal Reserve, —, Bloomberg, Nikkei, Japan's, of Finance, Financial Services Agency Locations: Japan, Asia

☆ Japanese yen weakens to fresh 38-year lows; top currency diplomat replaced
▼ + stars: | 2024-06-28 | by ( Lim Hui Jie | ) www.cnbc.com time to read: +2 min

Sopa Images | Lightrocket | Getty ImagesThe Japanese yen weakened to fresh 38-year lows on Friday, crossing the 161 mark against the dollar for the first time since 1986 and reaching a high of 161.27, according to LSEG data. The yen has been steadily deprecating since the Bank of Japan ended its negative interest rate policy and scrapped its yield curve control policy in March. Following the move, the currency crossed the 150 mark against the dollar, reaching 160 in late April before the country's finance ministry intervened. Stock Chart Icon Stock chart iconJapan's finance ministry confirmed that it intervened between April 26 to May 29 to the tune of 9.7885 trillion yen ($62.25 billion). The benchmark U.S. federal funds rate stands at 5.25% to 5.5%, while the Bank of Japan's benchmark interest rate is at 0%-0.1%.

Persons: Dong Chen, Dong Organizations: Currency Museum, Bank of Japan's Institute for Monetary, Economic Studies, Bank of Japan, Japan Ministry of Finance, U.S, Bank Locations: Asia, Swiss, Japan

☆ Dollar scales multi-week highs as other cenbanks more dovish than Fed
▼ + stars: | 2024-06-21 | by ( ) www.cnbc.com time to read: +3 min

Even so, Japan's top currency diplomat Masato Kanda stressed on Friday that Tokyo stands ready to take further "resolute" action against "speculative, excessive volatility". The dollar index was little changed at 105.66, on course for a slight weekly gain that would extend its winning streak to three weeks. Sterling was flat at $1.2657, sticking close to the $1.2655 low from Thursday, a level last seen on May 17. The BoE kept rates on hold, but some policy makers said the decision not to cut was "finely balanced". The European Central Bank kicked off its rate cutting cycle earlier this month.

Persons: Tony Sycamore, Sycamore, Masato Kanda, Sterling, BoE Organizations: U.S, Federal, Swiss, Swiss National Bank, Bank of England, Bank of, IG, U.S . Treasury, European Central Bank, Fed Locations: Japan, China, Tokyo

☆ Asia stocks slump as bond selloff spooks markets
▼ + stars: | 2023-10-04 | by ( Tom Westbrook | ) www.reuters.com time to read: +4 min

The spike in Treasury yields lifted the dollar to new heights with only the yen showing some fight amid speculation the Japanese authorities might be intervening behind the scenes. The yen breached the 150-per-dollar level in the London afternoon on Tuesday before suddenly shooting to 147.3. There was no confirmation from Tokyo, where Japan's finance minister and top currency diplomat have made no direct comment on the move. In commodity markets, the stronger dollar has helped put the brakes on oil prices and higher yields have weighed on gold. Brent crude futures were last steady at $90.87 a barrel, having hit an 11-month high of $97.69 last week.

Persons: Issei Kato, it's, Mel Siew, Ryota Abe, Kit Juckes, Tom Westbrook, Jamie Freed, Kim Coghill Organizations: U.S ., REUTERS, Japan's Nikkei, Muzinich, Co, Sumitomo Mitsui Banking Corporation, New Zealand, Federal, Treasury, Brent, Thomson Locations: Tokyo, Japan, Asia, SINGAPORE, London, Pacific, Singapore, Taiwan, Malaysian

[1/3] Traders work on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., September 26, 2023. "It has all the hallmarks of intervention in all honesty," said Michael Brown, market analyst at Trader X in London. The dollar fell 0.71% to 149.165 yen hovered near break-even against the euro . The yen is a particular casualty of the dollar's march to 10-month highs and the rise in Treasury yields, given a yawning gap between U.S. and Japanese interest rates. Gold prices languished near a seven-month low, weighed down by a robust dollar and elevated bond yields as the likelihood of U.S. rates staying higher for longer dominated sentiment.

Persons: Brendan McDermid, Michael Brown, Ronald Temple, Raphael Bostic, Bostic, Shunichi Suzuki, Suzuki, Brent, Ankur Banerjee, Jamie Freed, Susan Fenton, Jan Harvey, Deepa Babington, Cynthia Osterman Organizations: New York Stock Exchange, REUTERS, Global, Federal Reserve, Trader, Labor, Survey, Lazard, U.S, Dow Jones, Nasdaq, Atlanta Fed, Thomson Locations: New York City, U.S, London, New York, Japan, Singapore

☆ Dollar weakens against the yen after yen breaches key 150 level
▼ + stars: | 2023-10-03 | by ( ) www.cnbc.com time to read: +3 min

The Japanese yen has fallen about 25% year-to-date against the greenback. The sharp move lower suggested the Bank of Japan had intervened in the market to keep the yen from falling further. "The continued uptrend in UST-JGB encouraged the 150 to be breach in the wake of the better-than-expected JOLTS data. The dollar slipped 0.51% against the yen to 149.08 after hitting 150.165 on the JOLTS report. The dollar index, which tracks the unit against six peers, was up 0.13% at 107.16, at its highest since November.

Persons: Michael Brown, Marc Chandler, Jeremy Stretch, JGB, Stretch, Shunichi Suzuki, Wei Liang Chang, Russia's rouble Organizations: greenback, The, Bank of Japan, New York Federal Reserve, Trader, Bannockburn Global, U.S, CIBC Capital Markets, UST, Finance, DBS, Strong U.S, Federal Reserve, Reserve Bank of Australia's, Swiss Locations: London, Bannockburn, New York, United States, Europe

BoJ policymakers prefer to scrutinize more data to ensure wages and inflation keep rising before changing the policy, five sources familiar with the matter said. The report added there was no consensus within the central bank and the decision could still be a close call. The dollar gained 1.24% to 141.81 yen , after earlier reaching 141.95, the highest since July 10. The greenback is on track for its best weekly percentage gain against the Japanese currency since October at 2.22%. The pound is on track for a 1.75% weekly fall, its largest since early February.

Persons: Edward Moya, Moya, Kenneth Broux, Broux, Masato Kanda, Jerome Powell, Powell, Scherrmann, Karen Brettell, Iain Withers, Angus MacSwan, Jonathan Oatis Organizations: YORK, Reuters, Bank of Japan, FX, Societe Generale, Ministry of Finance, Federal Reserve, European Central Bank, Thomson Locations: Europe, New York, United States, U.S, London

☆ Yen slides after sources say Bank of Japan leaning to holding key policy
▼ + stars: | 2023-07-21 | by ( Iain Withers | ) www.reuters.com time to read: +4 min

BoJ policymakers prefer to scrutinise more data to ensure wages and inflation keep rising before changing the policy, five sources familiar with the matter said. The report added there was no consensus within the central bank and the decision could still be a close call. The dollar was heading for its biggest one-day gain versus the yen since April, rising as much as 1.3% to a nearly two-week high of 141.95. Prior to the report, the dollar had been up around 0.3% versus the yen. The dollar index - which tracks the greenback against six major peers including the yen - was last up 0.3% at 101.040.

Persons: Kenneth Broux, Broux, Kazuo Ueda, Masato Kanda, Scherrmann, Iain Withers, Ankur Banerjee, Angus MacSwan, David Holmes Organizations: Reuters, Bank of Japan, Trade, FX, Societe Generale, Ministry of Finance, Federal Reserve, European Central Bank, Thomson Locations: Europe, United States, U.S, Singapore

☆ Asia pushes back on 'excessive' currency moves amid enduring dollar strength
▼ + stars: | 2023-06-29 | by ( Clement Tan | ) www.cnbc.com time to read: +5 min

Japan finance officials have warned all this week against the "excessive" depreciation of the Japanese yen . Contrasting moves in the world's major currencies — including the Japanese yen, the Chinese yuan and the U.S. dollar — underscore the variance in domestic interest rates and monetary cycles. Authorities may be buying the Japanese yen "with the rise in USD/JPY set to run further," she added. The Japanese currency was hovering at about 144 against the greenback in Asia trade on Thursday. The central bank allows the currency to trade within a narrow band of 2% from each day's midpoint.

Persons: Sheldon Cooper, Carol Kong, Masato Kanda, Shunichi Suzuki, Philip Wee, Adnan Zaylani, BNM, Goldman Sachs Organizations: People's Bank of, Getty, U.S ., U.S, Commonwealth Bank of Australia, Ministry, Bank of Japan's, Reuters, Finance, DBS, greenback, Japan's Finance, Bank Negara Malaysia, Central Bank Locations: People's Bank of China, Asia, Japan, China, Covid, Ukraine, Malaysian, U.S . Federal, Bank

☆ Morning Bid: China gets weary of a weakening yuan
▼ + stars: | 2023-06-27 | by ( ) www.reuters.com time to read: +2 min

China, unencumbered as it is by global pacts and commitments on market rates, has reacted swiftly this week. State banks have sold dollars to slow the yuan's decline, and the mid-point for daily trade has also been adjusted. Likewise, when it's around the 145-150 levels, the yen tips the cost-benefit balance for Japan too. Japan's yen has weakened against the dollar so far this year significantly more than its regional counterparts. The yuan has slid more than 4% against the dollar so far this year.

Persons: Vidya Ranganathan, Masato Kanda, Muralikumar Organizations: Vidya, ECB's, Thomson Locations: U.S, China, Japan, ECB's Sintra

☆ Japan's yen is weakening again, prompting talk of another intervention worth billions of dollars
▼ + stars: | 2023-06-06 | by ( Jihye Lee | ) www.cnbc.com time to read: +1 min

However, pointing to recent language used by Finance Minister Shunichi Suzuki, she added that immediate action seems less likely. "The language used is definitely not as tough compared to the lead up to the September 2022 intervention," she said. Masato Kanda, Japan's vice minister of finance for international affairs, told reporters last week that the government would step in if needed as the yen showed further weakening, according to Nikkei. Kanda's comments came after an unscheduled meeting between officials at Japan's Finance Ministry, the publication reported. She noted the month-on-month change seen in the currency before the intervention in September had a range of 6% to 8%.

Persons: Goldman Sachs, Shunichi Suzuki, Masato Kanda, Chew Organizations: Bank of Japan, U.S, Bloomberg, Getty, Ministry of Finance, Finance, Nikkei, Japan's Finance Ministry

[1/2] Japanese Yen and U.S. dollar banknotes are seen in this illustration taken March 10, 2023. REUTERS/Dado Ruvic/IllustrationLONDON/SINGAPORE, May 30 (Reuters) - The yen strengthened on Tuesday on news of a meeting of Japan's finance ministry and central bank, while elsewhere the dollar rose to a two-month high against a basket of its peers after the U.S. debt ceiling deal. The dollar was last down 0.18% against the Japanese yen at 140.18 after the country's finance ministry said senior officials from the Ministry of Finance, Bank of Japan and Financial Services Agency will meet from 5:30 p.m. (0830 GMT). Japanese central bank policy has been a major focus for investors in the past year after the BOJ last year intervened to strengthen the yen. Kenneth Broux, head of corporate research for FX and rates at Societe Generale, said FX intervention at current levels was unlikely.

Japan's insistence on continuing to rely on gas may delay reaching global climate change goals, especially as its energy companies reap large profits from their investments in the sector, climate activists say. "But I think Japanese companies will generally hesitate to be involved in gas projects in the future, especially those with long lead times. Japan's support for gas clashes with findings that new investments in gas, which is mainly composed of the greenhouse gas methane and produces CO2 emissions when burned for energy, would undermine climate goals. But, gas investments have been lucrative for Japan's energy companies resulting in record profits. But, Japan's stated intention to lower its carbon emissions may mean these gas investments carry some risk.

The rescue package came shortly after embattled Credit Suisse (CSGN.S) tapped an emergency central bank loan of up to $54 billion to shore up its liquidity. The ECB supervisors saw no contagion to euro zone banks from the market turmoil, a source familiar with the content of the meeting told Reuters, adding that supervisors were told deposits remained stable across euro zone banks and exposure to Credit Suisse was immaterial. "I don't think we are in the crux of a global financial crisis. The ECB pressed forward with its 50 basis point rate hike, arguing that euro zone banks were in good shape and that if anything, higher rates should bolster their margins. Japan's finance ministry, financial regulator and central bank said they would meet on Friday to discuss developments.

March 17 (Reuters) - European Central Bank supervisors met to tackle growing cracks in the banking system on Friday after a $30 billion lifeline for U.S. lender First Republic Bank (FRC.N) eased fears of its imminent collapse. The rescue package came less than a day after Credit Suisse (CSGN.S) clinched an emergency central bank loan of up to $54 billion to shore up its liquidity. The two deals helped restore some calm to global markets, after a torrid week for banking stocks. "French and European banks are very solid," ECB policymaker and French central bank governor Francois Villeroy de Galhau, told BFM business radio. Japan's finance ministry, financial regulator and central bank said they would meet on Friday to discuss developments.

☆ Academic close to Japan's Kuroda says BOJ moving towards policy normalisation
▼ + stars: | 2022-12-28 | by ( ) www.reuters.com time to read: +2 min

Kuroda said then that the move was not a prelude to an exit from ultra-loose policy, because recent price rises meant Japan's inflation-adjusted, real interest rate had been declining. Japan's annual consumer inflation rate hit 2.8% in November even when excluding the effect of higher energy and food prices. "That would be an ideal initial condition for the BOJ to start hitting its inflation target on a more sustainable basis," Ito said. Ito and Kuroda, who have been close since working together at Japan's finance ministry in 1999-2001, lobbied hard for the BOJ to adopt a 2% inflation target to end deflation. The BOJ did so in early 2013 and deployed a massive stimulus programme when Kuroda became governor months later.

☆ Dollar eases on improved risk sentiment before Fed; Aussie pares gains after RBA
▼ + stars: | 2022-11-01 | by ( Kevin Buckland | ) www.reuters.com time to read: +3 min

"Our general sense is that the dollar probably has peaked, but that doesn't necessarily mean it's coming down." The Aussie gained 0.3% to $0.6416, but was off earlier highs after the RBA opted for another 25-bp hike. The Fed is widely expected to raise its benchmark rate by 75 bps on Wednesday, its fourth such increase in a row. But for the December meeting, Fed funds futures are split on the odds of a 75- or 50-bps increase. read moreReporting by Kevin Buckland; Editing by Ana Nicolaci da CostaOur Standards: The Thomson Reuters Trust Principles.

☆ Dollar retreats amid better risk sentiment ahead of Fed; Aussie rallies before RBA
▼ + stars: | 2022-11-01 | by ( Kevin Buckland | ) www.reuters.com time to read: +2 min

The risk-sensitive Australian and New Zealand dollars rose from one-week lows amid a broad lift in market sentiment, even as a Reserve Bank of Australia policy decision loomed. "Our general sense is that the dollar probably has peaked, but that doesn't necessarily mean it's coming down." But for the December meeting, Fed funds futures are split on the odds of a 75- or 50-bps increase. For the RBA, another 25 basis point hike is fully priced for 0330 GMT, but markets also lay better than 1-in-4 odds for a half point increase. read moreThe Bank of England is likely to deliver a 75-basis point hike on Thursday.

☆ Asia stocks edge up as investors eye Fed rate decision
▼ + stars: | 2022-11-01 | by ( Julie Zhu | ) www.reuters.com time to read: +2 min

The central bank is all but certain to raise interest rates by 75 basis points on Wednesday, but investors will look for any signals the Fed may be considering a deceleration in interest rate hikes in the future. Early in the Asian trading day, MSCI's broadest index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS) was up 0.7%. Australian shares (.AXJO) were up 0.65% with the mining index (.AXMM) leading the gains, while Japan's Nikkei stock index (.N225) rose 0.95%. Hopes the Fed may pull back from its aggressive interest rate hike policy have lifted U.S. equities last month withthe Dow jumping 13.95%, the S&P climbing 7.99% and the Nasdaq advancing 3.9%. In the energy market, oil prices fell as investors expected U.S. production could increase.

☆ Dollar retreats amid better risk sentiment ahead of Fed; Aussie rallies
▼ + stars: | 2022-11-01 | by ( ) www.cnbc.com time to read: +2 min

The risk-sensitive Australian and New Zealand dollars rose from one-week lows amid a broad lift in market sentiment, even as a Reserve Bank of Australia policy decision loomed. "Our general sense is that the dollar probably has peaked, but that doesn't necessarily mean it's coming down." The Fed is widely expected to raise its benchmark overnight interest rate by 75 bps on Wednesday, its fourth such increase in a row. But for the December meeting, Fed funds futures are split on the odds of a 75- or 50-bps increase. Against the yen , the greenback weakened 0.26% to 148.35.

☆ Stocks fall, bond yields rise as focus shifts to Fed, rate outlook
▼ + stars: | 2022-10-31 | by ( Caroline Valetkevitch | ) www.reuters.com time to read: +4 min

The Fed, which begins its two-day meeting Tuesday, is expected to deliver a fourth straight 75-basis-point rate hike on Wednesday in its attempt to tame inflation. The pan-European STOXX 600 index (.STOXX) rose 0.35% and MSCI's gauge of stocks across the globe (.MIWD00000PUS) shed 0.44%. read moreKey food and energy prices drop after initial panicGRAINS REPORTIn currencies, the dollar rose 0.8% against the struggling yen to 148.62 yen . Brazil's currency and main stock index rallied Monday, a day after leftist Luiz Inacio Lula da Silva won the country's presidential election. The Bovespa stock index (.BVSP) sank 2% at the opening and ended the session up 1.3%.

☆ U.S. dollar rises as Fed likely doing another big hike; sterling sinks
▼ + stars: | 2022-10-31 | by ( Gertrude Chavez-Dreyfuss | ) www.reuters.com time to read: +4 min

[1/2] U.S. Dollar and Euro banknotes are seen in this illustration taken July 17, 2022. In afternoon trading, the dollar rose 0.8% against the struggling yen to 148.62 yen . For the month of October, the dollar was up 2.7%, on track to post its third monthly gain versus the Japanese currency. Generally, the dollar is somewhere in the bend - trying to establish a high, but has not generally done so. The greenback, however, was on pace for a monthly decline of 0.5% in October, based on the dollar index.

☆ Japan intervened, buying yen in foreign exchange market late Friday: Reuters, citing sources
▼ + stars: | 2022-10-22 | by ( ) www.cnbc.com time to read: +1 min

Japan's finance ministry on Sept. 22, 2022 intervened in the currency market to bolster the yen, which has plummeted against the U.S. dollar in recent months on the widening policy gap between the US and Japanese central banks. Japan intervened in the foreign exchange market on Friday to buy yen for the second time in a month after the currency hit a 32-year low near 152 to the dollar, a government official and another person familiar with the matter told Reuters. After the dollar rose to 151.94 yen, its highest since 1990, the intervention drove the Japanese currency down more than 7 yen to a low of 144.50 yen. The Ministry of Finance (MOF) intervened in several stages from around 9:35 p.m. (1235 GMT), one source said. Japan's top currency diplomat, Masato Kanda, declined to say whether the MOF had intervened.

☆ Dollar gains with Treasury yields, sterling tumbles on hot inflation
▼ + stars: | 2022-10-19 | by ( Karen Brettell | ) www.reuters.com time to read: +4 min

British Pound Sterling and U.S. Dollar notes are seen in this June 22, 2017 illustration photo. Benchmark 10-year Treasury yields resumed their march higher as investors maintained expectations that the Federal Reserve will continue to aggressively raise rates to bring down soaring inflation, boosting demand for the U.S. currency. Register now for FREE unlimited access to Reuters.com RegisterThe U.S. central bank is expected to lift rates by another 75 basis points when it meets on November 1-2, with an additional 50 basis points or 75 basis points increase also likely in December. Japanese Finance Minister Shunichi Suzuki said on Wednesday that he was checking currency rates "meticulously" and with more frequency, local media reported. The BOJ remains an outlier among a global wave of central banks tightening monetary policy to combat soaring inflation, as it focuses on underpinning a fragile economy.

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