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Dollar stands tall as hawkish ECB fans downturn fears
  + stars: | 2022-12-16 | by ( Kevin Buckland | ) www.reuters.com   time to read: +2 min
It has been a volatile week for the greenback though, which has it ultimately on track for a 0.47% decline. The dollar climbed as high as 138.18 yen on Thursday for the first time since Nov. 30, ending that day with a 1.68% gain. Sterling , which is also part of the dollar index, gained 0.11% to $1.21945, following a 1.99% tumble the previous day. The Bank of England raised its key interest rate on Thursday as well and indicated more hikes were likely. The New Zealand dollar bounced 0.19% to $0.6353 following a 1.84% tumble on Thursday, when it dipped to $0.6321, also a first since Dec. 7.
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailJapan's economy will probably continue to experience moderate growth into 2023, says professorSayuri Shirai of Keio University, who served as a member of the Policy Board of the Bank of Japan from 2011-2016, says companies may want to "adjust bonuses rather than basic wage growth."
South Korea Deputy Prime Minister and Minister of Economy and Finance Choo Kyung-ho speaks with his staff attending the G-20 Finance Ministers Meeting in Bali, Indonesia on July 16, 2022. South Korea's government will expand its corporate bond-buying program among other liquidity supply measures amid growing worries about a credit crunch in bond and short-term money markets. The government will double the ceiling of its corporate bond-buying facility run by state-run banks to 16 trillion won ($11 billion), Minister of Economy and Finance Choo Kyung-ho said on Sunday. Commercial paper issued by securities firms will be included in the facility's purchase list, while an additional 3 trillion won of liquidity will be supplied by the Korea Securities Finance Corp for securities firms experiencing liquidity shortages, he said. The Bank of Korea's monetary policy board will also consider its own measures, such as reactivating a special purpose vehicle to purchase corporate bonds and commercial paper first introduced during the pandemic, Governor Rhee Chang-yong told reporters.
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.
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