March 07, 2014
Indicative Interbank spot sell rates only as of 08:30 AM PST.
PLEASE CALL THE FX DEPARTMENT AT (626) 279-3235 FOR THE MOST CURRENT RATE
USD/CNY---- 6.1247 (onshore)
The U.S. dollar rose to a six-week high against the yen as U.S. employment gains exceeded forecasts, boosting speculation that the Federal Reserve will continue to pare monetary stimulus that’s seen as debasing the currency. The U.S. currency rallied as the Labor Department reported employers added 175,000 jobs in February. The dollar gained 0.3 percent to 103.35 yen at 11:53 a.m. in New York, reaching the strongest level since Jan. 23.
The Bank of England said expectations for an interest-rate increase in the coming 12 months climbed to the highest in almost two years, as the economy strengthened. Forty percent of respondents to the BOE’s quarterly Inflation Attitudes Survey, carried out last month, predict the benchmark rate to rise in the period. That’s up from 34 percent in November and is the highest reading since May 2012. Thirty-seven percent anticipate the rate will stay the same. BOE Governor Mark Carney has pledged to keep borrowing costs at a record low at least until unemployment falls to 7 percent. With that threshold approaching -- the jobless rate is currently 7.2 percent -- Carney was forced to revise his so-called forward-guidance policy last month to reassure Britons that rates will stay low.
The euro reached the highest level in more than two years versus the dollar as bets on further European Central Bank stimulus waned, boosting demand for the 18-nation currency. The currency extended a fifth weekly advance versus the dollar after ECB President Mario Draghi yesterday signaled that deflation risks in the euro region are easing and policy makers kept interest rates at a record-low 0.25 percent. The euro added 0.1 percent to $1.3868 after touching $1.3915, the highest level since Oct. 31, 2011.
The Australian slipped today against the U.S. dollar after touched 91.11 U.S. cents yesterday. Australian Governor Glenn Stevens told lawmakers yesterday jawboning has a limited effect on the currency. He said the exchange rate is high by historical standards, reiterating comments in a March 4 policy statement. The Aussie climbed this week as data showed faster-than-expected economic growth and the biggest trade surplus in 2 1/2 years.
The Canadian dollar declined versus the majority of its most-traded counterparts after employers unexpectedly eliminated jobs last month. Canada’s dollar declined as a 7,000 jobs drop in February revived speculation the central bank may need to cut interest rates to bolster economic growth. The currency depreciated 0.9 percent to C$1.1086, after falling the most since Feb. 19.
The Japanese yen slipped against the U.S. dollar as U.S. employment gains exceeded forecasts.
The Chinese yuan posted its biggest weekly gain since October on speculation the central bank has ceased engineering a decline in the currency to discourage one-way appreciation bets. The People’s Bank of China raised the currency’s daily reference rate by 0.08 percent today, the biggest increase since Jan. 24, to 6.1201 per dollar. China’s currency strengthened 0.3 percent this week to 6.1280 per dollar in Shanghai, according to China Foreign Exchange Trade System prices. The currency closed 0.2 percent lower today.
This market update is prepared by Cathay Bank for informational purposes only and does not constitute any form of legal, tax or investment advice, nor should it be considered an assurance or guarantee of future exchange rate movements or trends. This information is provided without regard to the specific objectives, financial situation or needs of any recipient. Cathay Bank does not make any representations or warranties about the accuracy, completeness or adequacy of this market update.