Edition:
India

Richard Leong

U.S. Fed primes cash pump as quarter-end approaches

2:28am IST

NEW YORK The Federal Reserve plans to keep pouring tens of billions of dollars a day into the U.S. banking system through early October in a bid to avert another market disruption as the end of the quarter approaches, a time when lending typically diminishes.

U.S. Fed primes cash pump as quarter-end approaches

2:23am IST

NEW YORK The Federal Reserve plans to keep pouring tens of billions of dollars a day into the U.S. banking system through early October in a bid to avert another market disruption as the end of the quarter approaches, a time when lending typically diminishes.

FOREX-Dollar posts weekly gain on hopes for trade, Fed on hold

1:20am IST

* Sterling cools on doubts about Brexit deal * Futures imply traders see one more U.S. rate cut in 2019 * Graphic: World FX rates in 2019 http://tmsnrt.rs/2egbfVh (Updates market action) By Richard Leong NEW YORK, Sept 20 The U.S. dollar rose against a basket of currencies on Friday, for its first weekly increase in three, prompted by hopes of progress in U.S.-China trade talks and that the Federal Reserve would not lower rates aggressively. Sterling retreated from a two-month high versus the greenback after the Irish foreign minister said that London and the European Union were not yet close to a Brexit deal. U.S. and Chinese deputy trade negotiators are set to continue talks that began on Thursday in an effort to lay the groundwork for high-level discussions in early October that will determine whether the world's biggest economies can reach a trade deal. While tariffs and worries about protracted supply-chain disruption have hampered global business activity, the U.S. economy is still faring relatively well, analysts said. "The U.S. economy is clearly doing better than anyone else," said Joseph Trevisani, senior analyst at FX Street in New York. "I'm still in the stronger dollar camp." With housing starts at a 12-year high and factory output rebounding in August, the longest U.S. expansion on record seems to have more legs, he said. In late U.S. trading, an index that tracks the dollar against a basket of six major currencies was up 0.24% at 98.51 for a weekly gain of about 0.25%. The euro fell 0.2% on the day to $1.10175, while the greenback slipped 0.37% to 107.645 yen. Against a favorable economic backdrop, the Fed lowered key lending rates by a quarter point on Wednesday, but signaled a higher bar to further reductions in borrowing costs. On Friday, Fed officials delivered different assessments on the economy and what should be done about it. Interest rates futures implied traders saw a 63% chance of another rate cut by year-end, compared with 69% late on Thursday, CME Group's FedWatch program showed. Meanwhile, sterling was briefly the biggest gainer overnight against the dollar after European Commission President Jean-Claude Juncker said late Thursday he thought Brussels could reach agreement with Britain on its departure from the European Union. Sterling's gains faded after the comments by Irish Foreign Minister Simon Coveney on a Brexit deal, and a Financial Times report that British Prime Minister Boris Johnson had told colleagues he did not expect to be able to reach a full "legally operable" deal covering the Irish border at a meeting of EU leaders. The pound was down 0.37% at $1.2476 after touching a two-month high at $1.2582. It reached a four-month high of 87.875 pence per euro before easing to 88.26 pence, down 0.15% on the day. ======================================================== Currency bid prices at 3:20PM (1920 GMT) Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid Previous Change Session Euro/Dollar EUR= $1.1018 $1.1040 -0.20% -3.93% +1.1068 +1.0997 Dollar/Yen JPY= 107.6200 108.0000 -0.35% -2.39% +108.0800 +107.6300 Euro/Yen EURJPY= 118.58 119.27 -0.58% -6.05% +119.3700 +118.5500 Dollar/Swiss CHF= 0.9913 0.9927 -0.14% +1.01% +0.9935 +0.9891 Sterling/Dollar GBP= 1.2472 1.2524 -0.42% -2.23% +1.2581 +1.2462 Dollar/Canadian CAD= 1.3275 1.3260 +0.11% -2.65% +1.3300 +1.3254 Australian/Doll AUD= 0.6764 0.6789 -0.37% -4.04% +0.6809 +0.6761 ar Euro/Swiss EURCHF= 1.0920 1.0960 -0.36% -2.97% +1.0969 +1.0913 Euro/Sterling EURGBP= 0.8832 0.8814 +0.20% -1.69% +0.8845 +0.8788 NZ NZD= 0.6257 0.6301 -0.70% -6.85% +0.6308 +0.6256 Dollar/Dollar Dollar/Norway NOK= 9.0631 8.9783 +0.94% +4.91% +9.0671 +8.9656 Euro/Norway EURNOK= 9.9872 9.9136 +0.74% +0.82% +9.9900 +9.9111 Dollar/Sweden SEK= 9.7189 9.6858 +0.11% +8.42% +9.7378 +9.6612 Euro/Sweden EURSEK= 10.7073 10.6960 +0.11% +4.32% +10.7205 +10.6880 (Additional reporting by Saikat Chatterjee in LONDON; Editing by Bernadette Baum and Andrea Ricci)

GLOBAL FOREX-Dollar gains on hopes for trade, Fed on hold

20 Sep 2019

* Sterling cools on doubts about Brexit deal * Futures imply traders see one more U.S. rate cut in 2019 * Graphic: World FX rates in 2019 http://tmsnrt.rs/2egbfVh (Updates market action, changes dateline, previous LONDON) By Richard Leong NEW YORK, Sept 20 The U.S. dollar rose against a basket of currencies on Friday, putting it on track for its first weekly increase in three, prompted by hopes of progress in U.S.-China trade talks and that the Federal Reserve would not lower rates aggressively. Sterling retreated from a two-month high versus the greenback after the Irish foreign minister said that London and the European Union were not yet close to a Brexit deal. U.S. and Chinese deputy trade negotiators are set to continue talks that began on Thursday in an effort to lay the groundwork for high-level discussions in early October that will determine whether the world's biggest economies can reach a trade deal. While tariffs and worries about protracted supply-chain disruption have hampered global business activity, the U.S. economy is still faring relatively well, analysts said. "The U.S. economy is clearly doing better than anyone else," said Joseph Trevisani, senior analyst at FX Street in New York. "I'm still in the stronger dollar camp." With housing starts at a 12-year high and factory output rebounding in August, the longest U.S. expansion on record seems to have more legs, he said. At 11:36 a.m. (1536 GMT), an index that tracks the dollar against a basket of six major currencies was up 0.31% at 98.58. It was on course to gain 0.3% on the week. The euro fell 0.34% on the day at $1.1003, while the greenback slipped 0.11% to 107.935 yen. Against a favorable economic backdrop, the Fed lowered key lending rates by a quarter point on Wednesday, but signaled a higher bar to further reductions in borrowing costs. Interest rates futures implied traders saw a 64% chance of another rate cut by year-end, compared with 69% late on Thursday, CME Group's FedWatch program showed. Meanwhile, sterling was briefly the biggest gainer overnight against the dollar after European Commission President Jean-Claude Juncker said late Thursday he thought Brussels could reach agreement with Britain on its departure from the European Union. Sterling's gains faded after Ireland's foreign minister's comments on a Brexit deal, and a Financial Times report that British Prime Minister Boris Johnson had told colleagues he did not expect to be able to reach full "legally operable" deal covering the Irish border at a meeting of EU leaders. The pound was down 0.19% at $1.2498 after touching a two-month high at $1.2582. It reached a four-month high of 87.875 pence per euro before easing to 88.03 pence, up 0.11 on the day. ======================================================== Currency bid prices at 11:34AM (1534 GMT) Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid Previous Change Session Euro/Dollar EUR= $1.1000 $1.1040 -0.36% -4.09% +1.1068 +1.1001 Dollar/Yen JPY= 107.9300 108.0000 -0.06% -2.11% +108.0800 +107.7800 Euro/Yen EURJPY= 118.73 119.27 -0.45% -5.93% +119.3700 +118.7400 Dollar/Swiss CHF= 0.9929 0.9927 +0.02% +1.17% +0.9935 +0.9891 Sterling/Dollar GBP= 1.2492 1.2524 -0.26% -2.08% +1.2581 +1.2462 Dollar/Canadian CAD= 1.3264 1.3260 +0.03% -2.74% +1.3300 +1.3255 Australian/Doll AUD= 0.6769 0.6789 -0.29% -3.97% +0.6809 +0.6770 ar Euro/Swiss EURCHF= 1.0925 1.0960 -0.32% -2.92% +1.0969 +1.0923 Euro/Sterling EURGBP= 0.8805 0.8814 -0.10% -1.99% +0.8845 +0.8788 NZ NZD= 0.6257 0.6301 -0.70% -6.85% +0.6308 +0.6258 Dollar/Dollar Dollar/Norway NOK= 9.0514 8.9783 +0.81% +4.78% +9.0519 +8.9656 Euro/Norway EURNOK= 9.9552 9.9136 +0.42% +0.50% +9.9730 +9.9111 Dollar/Sweden SEK= 9.7199 9.6858 -0.03% +8.44% +9.7272 +9.6612 Euro/Sweden EURSEK= 10.6926 10.6960 -0.03% +4.18% +10.7195 +10.6880 (Additional reporting by Saikat Chatterjee in LONDON; Editing by Bernadette Baum)

FOREX-Dollar falls as some central banks outside U.S. hold rates steady

20 Sep 2019

* Sterling hits highest since mid-July on EU's Juncker comments * Less U.S. money market stress pares demand for greenback * Norwegian crown's gain fades after Norges Bank hikes rates * Graphic: World FX rates in 2019 http://tmsnrt.rs/2egbfVh (Updates market action, adds quote) By Kate Duguid and Richard Leong NEW YORK, Sept 19 The dollar fell against most major currencies on Thursday as some central banks refrained from cutting interest rates after the Federal Reserve's second rate decrease this year, boosting the appeal of their currencies versus the greenback. Sterling rallied in late U.S. trading following comments from European Commission President Jean-Claude Juncker which raised hopes for a deal for Britain to leave the European Union. The Swiss National Bank, the Bank of England and the Bank of Japan all kept their policies on hold on Thursday. Norges Bank increased its key policy rate, moving its rates in the opposite direction of Europe and the United States. These central banks are generally "kind of holding their breath and holding their fire in terms of fully acknowledging that further easing could come down the road but not moving in a proactive way towards additional easing," said Brian Daingerfield, head of G10 FX strategy at NatWest Securities in Stamford, Connecticut. On Wednesday, the Fed as expected cut interest rates by a quarter point to support a record-long economic expansion but signaled a higher bar for further reductions in borrowing costs amid a favorable economic outlook. On the other hand, the Organisation for Economic Co-Operation and Development (OECD) on Thursday cut its global economic growth forecasts for 2019 and 2020. U.S. gross domestic product is expected to rise 2.4% this year, down from a forecast 2.8% growth in May, the group said. In late U.S. trading, the euro was up 0.19% at $1.1051, while the greenback was 0.42% lower at 107.99 yen. The dollar shed 0.53% at 0.99235 Swiss franc, and declined 0.32% to C$1.3254. The greenback fell to a five-week low at 8.9688 Norwegian crown before erasing its earlier losses. Some analysts also attributed lower demand for the greenback as stress in U.S. money markets has subsided with the Fed injecting over $200 billion in temporary cash into the banking system since Tuesday. "The shortage of dollars has eased somewhat. With a possible crisis averted, you have people moving back into other currencies," said Karl Schamotta, chief market strategist at Cambridge Global Payments in Toronto. Meanwhile, the British pound posted a late lift after Juncker said "I think we can have a deal" if the Irish border backstop, which the British government wants removed, could be replaced with alternatives. Following Juncker's comments, sterling hit $1.256, its highest since July 15 and $88.04 pence per euro, a level not seen since late May. ======================================================== Currency bid prices at 3:06PM (1906 GMT) Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid Previous Change Session Euro/Dollar EUR= $1.1051 $1.1029 +0.20% -3.64% +1.1073 +1.1024 Dollar/Yen JPY= 107.9700 108.4400 -0.43% -2.07% +108.4600 +107.8000 Euro/Yen EURJPY= 119.33 119.60 -0.23% -5.46% +119.6600 +118.9800 Dollar/Swiss CHF= 0.9923 0.9973 -0.50% +1.11% +0.9983 +0.9901 Sterling/Dollar GBP= 1.2534 1.2468 +0.53% -1.75% +1.2559 +1.2439 Dollar/Canadian CAD= 1.3255 1.3284 -0.22% -2.80% +1.3307 +1.3242 Australian/Doll AUD= 0.6799 0.6827 -0.41% -3.55% +0.6832 +0.6781 ar Euro/Swiss EURCHF= 1.0966 1.1000 -0.31% -2.56% +1.1017 +1.0957 Euro/Sterling EURGBP= 0.8816 0.8841 -0.28% -1.87% +0.8893 +0.8805 NZ NZD= 0.6304 0.6320 -0.25% -6.13% +0.6331 +0.6299 Dollar/Dollar Dollar/Norway NOK= 8.9694 8.9450 +0.27% +3.83% +8.9835 +8.8885 Euro/Norway EURNOK= 9.9115 9.8652 +0.47% +0.06% +9.9277 +9.8124 Dollar/Sweden SEK= 9.6857 9.7251 -0.21% +8.05% +9.7388 +9.6739 Euro/Sweden EURSEK= 10.7043 10.7272 -0.21% +4.29% +10.7551 +10.6970 (Reporting by Richard Leong, Kate Duguid in NEW YORK Additional reporting by Tommy Wilkes, Saikat Chatterjee in LONDON Editing by Rosalba O'Brien and Chris Reese)

Fed makes small changes to control policy rate, hints at more to come

19 Sep 2019

NEW YORK/WASHINGTON The Federal Reserve on Wednesday made only minor changes to help it better manage its benchmark interest rate after the U.S. central bank briefly lost control of it earlier in the week.

Fed makes small changes to control policy rate, hints at more to come

19 Sep 2019

NEW YORK/WASHINGTON The Federal Reserve on Wednesday made only minor changes to help it better manage its benchmark interest rate after the U.S. central bank briefly lost control of it earlier in the week.

Fed pumps more cash as key rate breaks above target

19 Sep 2019

NEW YORK The Federal Reserve injected another $75 billion into the U.S. banking system on Wednesday, restoring a measure of order after a bout of extreme volatility inside the bank funding market drove the central bank's benchmark interest rate above its targeted range for the first time since the financial crisis.

UPDATE 2-Fed makes small changes to control policy rate, hints at more to come

19 Sep 2019

NEW YORK/WASHINGTON, Sept 18 The Federal Reserve on Wednesday made only minor changes to help it better manage its benchmark interest rate after the U.S. central bank briefly lost control of it earlier in the week.

Explainer: The Fed has a repo problem. What's that?

19 Sep 2019

As if the U.S. Federal Reserve did not already have enough on its plate heading into its meeting on interest rates this week, chaos deep inside the plumbing of the U.S. financial system has thrown policymakers an unexpected curveball. | Video

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