Top Headlines

Malaysia’s Central Bank Takes Action Against Firm Over Ringgit Trade – Reuters

Bank Negara Malaysia said it was taking action against an unnamed financial institution for failing to promptly notify the central bank of its dealers’ misconduct involving the fixing of the dollar-ringgit exchange rate.

Dollar Inches Higher in Holiday-Thinned Trade – Reuters

The dollar inched higher against the yen and a handful of other major currencies in trade curtailed by holidays in financial centres in Europe and Asia.

Dollar’s Rise Threatens Manufacturing Recovery – Wall Street Journal (subscription)

Greenback surges to 14-year high in wake of Trump win and Fed move, making US goods more expensive abroad.

Brexit Talks to Rock Pound as Article 50 Marks Sterling’s ‘Final Dip’ – Telegraph

The pound faces a rollercoaster ride next year as policymakers start the process of leaving the European Union, analysts have warned.

Japan’s Cabinet Secretary Suga Says FX Policy is a Top Abe Priority – Reuters

Currency policy is a top priority of Premier Shinzo Abe’s administration in creating a favorable business environment for Japanese companies, the country’s top government spokesman told the Nikkei newspaper in an interview.

Yuan Turnover Soars in Sign of December Outflow Pressures – Bloomberg

The onshore yuan’s surging trading volume is another piece of evidence that capital is fleeing China at a faster pace.

Undercapitalized Tier 1 Banks Which Restrict Credit to the FX Industry Are a Law Unto Themselves, Crackdown on CEO Salaries Begins – Finance Feeds

RBS and Barclays, two very large FX dealers, are undercapitalized according to the Bank of England.

EM Currencies: Winners and Losers in 2016 – Financial Times (subscription)

Among the losers, the Argentine peso, the Mexican peso and the Turkish lira are in a tight three-horse race for the bottom of the EM currency barrel.

Economic Relativity in Relationship to Currencies – Seeking Alpha

One fact remains front and center and that is unstable currency markets can be a precursor to massive shifts in value and a sudden drop in confidence.

More Currency Swap Options Are Needed – Gulf News

Does the world need a worldwide single acceptable currency? 

2016 – A Year of Institutional Adoption, Hype and Drama for Blockchain – Finance Magnates

The world of blockchain based currencies and financial instruments is quite likely the most challenging field in business to summarize on a yearly time scale.

Regulatory News

Trump’s Financial Deregulation Might Be Bad News for Banks After All – Wall Street Journal (subscription)

Some influential people in the president-elect’s sphere say big lenders should maintain higher capital in return for scaling back some regulations.

The Volcker Rule and Other Regulations Carl Icahn Likes – Wall Street Journal (subscription)

Donald Trump’s new regulatory adviser has voiced need for Dodd-Frank provision, but has also said regulations on banks are ‘too much’.

Shekel Weakens as BoI Buys Foreign Currency – Globes

The Bank of Israel reportedly intervened in foreign currency trading and bought an estimated $300 million in foreign currency, thus weakening the shekel.

After a Rough Patch, Rupee Seen as Best Performer in Asia in ’17 – Money Control

The Reserve Bank of India deserves all credit for maintaining stability in the economy’s most volatile phase since the financial crisis of 2008.

Company News

UBS Exchange Rate Forecasts for Euro, Pound Sterling, US Dollar, Australian, Canadian, New Zealand Dollars and Gold Price – Exchange Rates

The EUR/USD exchange rate will not reach parity and USD/JPY will fall says UBS for its Global Top FX Trades for 2017.

The Importance of NAVcoin Open-Sourcing its Anonymous Transaction System – Finance Magnates

NAVcoin developers release NAVtech in what some are saying is the first truly anonymous cryptographic transaction system.

Market Savvy

Won Hits 9½ Month Low; Rise in US Bond Yields Dents Asia FX – Reuters

The South Korean won touched a nine-and-a-half-month low against the dollar, with most Asian currencies retreating as a rise in US bond yields helped bolster the greenback.

Rupee Down 10 Paise at 67.84 Vs US Dollar in Early Trade – Financial Express

The rupee weakened by 10 paise to 67.84 against the US dollar in early trade at the interbank foreign exchange on month-end dollar demand from importers amid capital outflows.