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.
The dollar surged to a near 14-year high, clocking up a string of milestones against other top world currencies and clobbering emerging markets.
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.
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
Despite ongoing domestic uncertainty the US dollar has remained on dominant form against the euro, with investors anticipating an imminent Fed rate hike.
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.
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.
The onshore renminbi exchange rate weakened to as much as RMB 6.9235 against the dollar, a level not seen since June 2008.
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 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.
Asia’s emerging markets have faced outflows since Donald Trump won the US presidential election earlier this month.
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.
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.
Donald Trump’s election as US president is driving global markets to levels not seen in nearly two decades — but in completely different directions.
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.
Just weeks after Securities & Exchange Commission head Mary Jo White exited the US regulator, the SEC is set to lose a second senior figure.
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’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.
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.
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.
The Warsaw Stock Exchange has launched a British pound foreign exchange contract to allow Polish clients to hedge their exposure to the UK currency.
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.
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.
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.