Novedades sobre el Intercambio Extranjero (en Inglés)
October 8, 2015
Indicative Interbank spot sell rates only as of 8:30 AM PST.
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U.S. dollar fell 0.1 percent to $1.1250 per Euro and declined 0.1 percent to 119.94 per Japanese yen as of 10:08 a.m. in New York. U.S. dollar slipped against most major currencies as traders pared bets before the Federal Reserve publishes minutes from its most recent policy meeting. Fed Chair Janet Yellen has said the central bank still expects to raise its benchmark rate this year, after forgoing an increase last month.
British pound weakened 0.4 percent to 73.67 per Euro as of 4:41 p.m. London time, and fell 0.1 percent to $1.5303 per U.S. dollar. British pound tumbled versus the Euro, and reversed an advance against the U.S. dollar, after the Bank of England signaled there’s scope to keep interest rates at a record low as inflation weakness persists. The Bank of England’s Monetary Policy Committee voted 8-1 to keep the key rate at 0.5 percent, while the minutes of its October meeting showed officials weighed the risk of a further global slowdown against resilient domestic demand and consumer spending. The Bank of England policy makers made their decision amid mounting signs that the economy is starting to lose momentum after 10 consecutive quarters of expansion. A report this week showed services grew at the weakest pace in more than two years, underscoring the case for keeping rates unchanged.
Euro was 1.1275 per U.S. dollar at 8:34 AM PST. The Euro, benefiting from a current-account surplus and near-zero interest rates, has become a popular funding currency, meaning it tends to gain when investors flee risk. The European Central Bank’s account of policy makers’ thinking showed they opted to take more time to analyze recent threats to the economy before drawing conclusions. The European Central Bank said policy makers opted to take more time to analyze downside risks for growth and inflation in the 19-nation region. European Central Bank said Sept. 23 that it was too soon to decide whether risks to the economic outlook warranted a step-up in monetary stimulus. The European Central Bank is grappling with the fallout of weaker growth in emerging markets such as China and a renewed slump in oil prices that is weighing on inflation.
Australian dollar was 0.7213 and New Zealand dollar was 0.6630 per U.S. dollar at 8:34 AM PST. Both Australian and New Zealand dollars halted a week-long rally amid fresh signs of fragility in the global economy.
Canadian dollar was 1.3026 per U.S. dollar at 8:34 AM PST. Canadian stocks fluctuated after reaching their highest level since August, as a rally in global equities faltered amid renewed concern that slowing growth in China may hurt demand for commodities. Producers of energy and raw materials slumped for the first time in five days, keeping a lid on gains in the benchmark index. Copper fell from a two-week high over concerns of weak demand outlook in China, the world’s biggest consumer of the metal. Global equities had rallied while China’s markets were closed for a weeklong holiday. The Standard & Poor’s/TSX Composite Index fell less than one point to 13,868.11 at 10:38 a.m. in Toronto.
Japanese yen added 0.2 percent to 119.82 per U.S. dollar, strengthening for a third day. Japanese stocks fell for the first time in seven days as an unexpected drop in machine orders and smaller-than-expected gains in Chinese equities after a week-long holiday weighed on sentiment. The Topix index dropped 0.8 percent to 1,481.40 at the close in Tokyo. The Nikkei 225 sank 1 percent to 18,141.17. Japanese machine orders fell 3.5 percent in August from a year earlier, worse than the 3.5 percent gain estimated by economists, a government report showed Thursday. On a month-on-month basis, orders shrank 5.7 percent, below estimates for a gain of 2.3 percent.
Onshore China yuan climbed 0.05 percent to close at 6.3537 per U.S. dollar in Shanghai. It rose to 6.3496 per U.S. dollar earlier, the strongest level since the devaluation. In Hong Kong, the currency slipped 0.22 percent to 6.3541 per U.S. dollar. The offshore rate jumped 0.25 percent on Wednesday as the foreign reserves data suggest concerns about capital outflows are overdone. China yuan rose to a two-month high as China’s markets reopened after a week-long break in which U.S. dollar retreated and the nation’s foreign-exchange stockpile was shown to have fallen less than economists forecast. The central bank raised the China yuan’s fixing by 0.17 percent to 6.3505 per U.S. dollar. China wants to make China yuan more freely usable in global trade and finance to support its bid to be included in the IMF’s Special Drawing Rights basket along with the U.S. dollar, Euro, Japanese yen and British pound. China yuan overtook the Japanese yen to become the world’s fourth most-used global payments currency. The nation started the first phase of a cross-border China yuan payment system on Thursday. The China International Payment System provides clearing and settlement services and has 19 banks as direct participants.
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.