Top Headlines
Dollar Juggernaut Still Rolling On: Strongest in Nearly 14 Years – Financial Times (subscription)
The buck is not backing down, with the dollar index, which tracks its value against a basket of other major currencies, now up at its strongest level since March 2003.
Surging Dollar Skittles Euro, Yen and EM Currencies – Reuters
The dollar surged to a near 14-year high, clocking up a string of milestones against other top world currencies and clobbering emerging markets.
Indian Rupee Hits Record Low Against Dollar – Financial Times (subscription)
India’s rupee has hit a record level of weakness against the dollar as the administration of prime minister Narendra Modi pushes ahead with an unexpected ban on high-value bank notes in a drive to clamp down on counterfeiting and illicit wealth.
India Central Bank Intervenes as Rupee Falls to Near Record Low – Reuters
The Reserve Bank of India was spotted intervening in the foreign exchange market after the rupee fell to as low as 68.83 per dollar, on the verge of surpassing its previous record low of 68.85 in August 2013, traders said.
- Indian Rupee Hits Record Low of 68.86; Central Bank Intervenes – Reuters
- Rupee Plunges to Record Low as Foreigners Dump Indian Assets on Fed – Bloomberg
The EUR/USD Exchange Rate Tumbles to Worst Levels Since March 2015 – Exchange Rates
Despite ongoing domestic uncertainty the US dollar has remained on dominant form against the euro, with investors anticipating an imminent Fed rate hike.
Pound Erases Losses as Hammond Delivers Autumn Statement – Financial Times (subscription)
Sterling has reversed a 0.3 per cent decline against the dollar as UK chancellor Philip Hammond announced a downgrade to UK growth for 2017, higher borrowing targets, and a climb in government debt to 90 per cent of GDP.
Fired Citigroup FX Trader Suing Bank Didn’t Use ‘Common Sense’ – Bloomberg
A Citigroup trader fired following global probes into foreign exchange market manipulation should have known that sharing confidential information with rivals was wrong, the executive who dismissed him said in a lawsuit.
Renminbi Weakens to 6.92 Against Dollar – Financial Times (subscription)
The onshore renminbi exchange rate weakened to as much as RMB 6.9235 against the dollar, a level not seen since June 2008.
PBoC Sets Rmb Trading Band’s Midpoint Above 6.9 – Financial Times (subscription)
China’s central bank has set the renminbi trading band above 6.9 against the dollar as the currency’s exchange rate passed a 10 per cent decline from its level prior to the market-jolting one-off devaluation of August 2015.
Japan’s Asakawa Says Trump Presidency Won’t Change Japan Forex Policy: Nikkei – Reuters
Japan’s top currency diplomat Masatsugu Asakawa said there will be no change to Japan’s currency policy after US President-elect Donald Trump forms his administration, the Nikkei newspaper reported.
Philippine Market in a Funk as Peso Slides to 2008 Crisis Level – Bloomberg
Asia’s emerging markets have faced outflows since Donald Trump won the US presidential election earlier this month.
Turkish Lira Falls Further as Erdogan Calls for Interest Rate Cuts – Financial Times (subscription)
The Turkish lira drifted lower into uncharted territory after President Recep Tayyip Erdogan repeated his aversion to interest rates ahead of a key Central Bank decision.
December and the Looming FX Moves – Profit & Loss
This year will be interesting because we have event risk and, possibly for the first time in a while, some serious pre-positioning to be done.
These Charts Show That Trump Is Bringing the 1990s Back to Markets – Bloomberg
Donald Trump’s election as US president is driving global markets to levels not seen in nearly two decades — but in completely different directions.
Rising US Yields Hurt Asia FX Sentiment; Yuan Views Most Bearish in 10 Months – Reuters
Sentiment towards emerging Asian currencies deteriorated sharply in the last two weeks as expectations of higher US interest rates sent the dollar higher, prompting investors to dump regional stocks and bonds, a Reuters poll showed.
Regulatory News
Second SEC Departure as Luparello Exits – Profit & Loss
Just weeks after Securities & Exchange Commission head Mary Jo White exited the US regulator, the SEC is set to lose a second senior figure.
Media Report on RBI Chief Rajan’s Re-Appointment Hits Forex Markets – Reuters
The rupee headed to a one-week low against the dollar following a report from a major regional newspaper that Reserve Bank of India Governor Raghuram Rajan did not want to remain at the central bank, citing unidentified sources.
Russia Central Bank Declines Comment on How Rosneft Bonds Will Affect Money, FX Markets – Reuters
Russia’s central bank declined comment on the possible effects of a new bond programme by Rosneft on the country’s money and forex markets when contacted by Reuters.
Company News
Markit Report Suggests Increased Brexit Pessimism from UK Households and Lower GBP – Exchange Rates
Leading marketing agency Markit published its latest UK Household Finance Index and its finding’s threaten to weigh on pound sterling exchange rates moving forward.
Renminbi Share of Swift Payments Dips to Two-Year Low – Financial Times (subscription)
The renminbi’s share of international transactions fell back last month to the lowest level since late 2014 as October’s long domestic Golden Week holiday bit into international transactions using the Chinese currency.
Warsaw Exchange Launches Sterling FX Contract – FOW (subscription)
The Warsaw Stock Exchange has launched a British pound foreign exchange contract to allow Polish clients to hedge their exposure to the UK currency.
Market Savvy
EM Currencies Firm Slightly After Weakening to Record Levels – Financial Times (subscription)
The dollar is firmly in the driver’s seat in Asia forex trade, but it looks to be easing up on the gas for now as weakening by emerging markets currencies pares back for the Malaysian ringgit, Philippine peso and China’s renminbi.
Growing US Tightening Fears Rattle Asia FX; Yuan Hits 8-½-Year Low – Reuters
Emerging Asian currencies skidded as views grew that the Federal Reserve will tighten more aggressively given solid US economic data, adding to pressure from higher Treasury yields and fears over Washington’s trade protectionism.
C$ Weakens on Monetary Policy Divergence Prospects – Reuters
The Canadian dollar weakened against its US counterpart as US data reinforced expectations of Federal Reserve interest rate hikes and market players looked past an upcoming meeting of major oil producers.