All articles tagged with #foreign exchange
The Japanese yen fell to about 162 per dollar, its weakest since 1986, prompting officials to warn they will act against excessive moves; authorities signaled readiness to intervene as the BOJ raised rates to 1% and Japan spent over 11.7 trillion yen in FX reserves to support the currency, reflecting persistent weakness driven by yield differentials and carry trades.
The yen firmed modestly after a senior Japanese finance official warned decisive government action may be required, a message traders interpreted as a prelude to intervention. The currency traded around ¥159.8 per dollar after briefly approaching ¥160, with BoJ Governor Ueda saying currency moves are being monitored for their impact on forecasts. The episode comes amid ongoing speculation about potential government action, including talks of intervention in crude-oil markets to shield households from higher energy costs.
Scott Bessent said the Trump administration remains committed to a strong-dollar policy and is not intervening in dollar–yen markets, fueling a dollar rally as traders reassessed intervention risk; he argued that sound fundamentals and policy will attract capital and strengthen the dollar over time, while speculation of official FX action has been denied.
The ICE U.S. Dollar Index fell about 1.9% for the week—the worst weekly drop since May—while stocks and Treasuries recovered after President Trump’s pivot on Greenland, signaling ongoing dollar weakness as policy surprises keep markets wary and analysts foresee further declines from broader diversification.
A former HSBC trader, Mark Johnson, who was convicted in the US for alleged forex manipulation, has had his conviction overturned after a nine-year legal battle, with the court ruling that his actions were consistent with industry practices and not illegal.
The BIS Bulletin discusses the growing linkages between stablecoins and traditional finance, highlighting policy challenges such as financial stability risks, concerns over monetary sovereignty, and the need for tailored regulations due to the unique features of stablecoins.
Reuters will not publish a foreign exchange report during U.S. hours on Monday, May 27, due to a public holiday. Reports will resume in Asian trading hours on Tuesday, May 28.
Argentina's tourism industry is facing a slowdown due to surging inflation and a narrower foreign exchange gap, with scenes of South Americans visiting the country for its cheap cost of living reversing. President Javier Milei's policies have led to a decline in consumer spending at home, prompting Argentines to cross the border into Chile, while annual inflation has accelerated to 288% in March.
China is maintaining its defense of the yuan against potential weakness, as the People's Bank of China keeps the daily reference rate for the currency largely unchanged, signaling the importance of yuan stability amid pressure from a strong dollar and negative investor sentiment.
Zimbabwe has replaced its local dollar with a new currency called ZiG, backed by a mix of foreign currency and gold, in an effort to stabilize its economy. The new currency will be launched on April 8 at a rate of 13.56 per dollar and will have an initial interest rate of 20%.
The Nigerian government has demanded nearly $10bn in compensation from cryptocurrency firm Binance, alleging manipulation of foreign exchange rates and untraceable fund transfers, which have contributed to the naira's significant devaluation. Two Binance executives were arrested, and the government has suspended several cryptocurrency firms in an effort to stabilize the currency and curb illicit activities. Nigeria, a major cryptocurrency market, has seen increased scrutiny on cryptocurrency transactions amid concerns about money laundering and funding terror.
Nigeria's naira hit record lows on both official and unofficial markets, while stocks experienced their largest one-day drop in over a year as investors sold off local assets. The currency fell to 1,712 naira per dollar, reflecting the country's ongoing dollar shortages and inflation rate reaching almost 30% in annual terms. Analysts warn that without policy measures to curb inflation, the naira's devaluation and negative real yield in Nigerian debt securities could deter foreign investors, while stocks, including heavyweight Dangote Cement and MTN, fell 10% on the bourse. Central bank Governor Olayemi Cardoso has hiked open market rates to attract investors to bills, but the fall in the naira means yields would need to rise further.
Chinese stock markets are experiencing continued downward pressure, prompting high risk warnings for foreign exchange trading. Investors are advised to carefully consider their investment objectives, experience level, and risk tolerance, as well as seek advice from independent financial or tax advisors. FOREXLIVE™ emphasizes that it is not an investment advisor and does not endorse the opinions or recommendations of other sources of information, while also disclaiming liability for any lost principal or profits arising from the use of such information.
China's renewed currency depreciation and measures taken by Beijing to address the issue present a downside risk to bitcoin through the foreign exchange channel, as the tightly controlled Chinese yuan has declined against the U.S. dollar. The latest measures could lead to broad-based USD strength, tighter financial conditions worldwide, and investors scaling back exposure to risky assets like bitcoin. The dollar index has already gained this month, while bitcoin has dropped to $40,500 from highs near $49,000 earlier in the month.
CNBC's Jim Cramer suggests buying shares of Procter & Gamble (P&G) due to the recent weakening of the U.S. dollar. P&G had previously warned about the impact of foreign-exchange headwinds on its sales growth, but with the dollar index falling about 2%, the company is better positioned to handle the currency dynamics. Additionally, P&G benefits from lower commodity costs. Cramer's Charitable Trust, the portfolio used by the CNBC Investing Club, has a stake in P&G.