The new higher-for-longer stage of global monetary policy may last only until the early months of 2024 as central banks begin moving toward cutting borrowing costs. That’s the outlook foreseen by Bloomberg Economics, whose aggregate gauge of world interest rates is seen beginning a swift descent in the first quarter. In advanced economies, that shift … Read more
Good morning and welcome to Monday, September 25 — you’re reading the ABC’s markets and business blog. First up, let’s look back at how Wall Street finished up last week. The Dow Jones, S&P500 and Nasdaq were all lower, as the markets come to grips with the US Federal Reserve’s latest warning that inflation is … Read more
For currency speculators around the world, the trade has long been a no-brainer: simply borrow yen, which costs nothing because of sub-zero interest rates in Japan, and then park the money anywhere yields are higher, earning a tidy profit from the difference. But now, a surprising low-cost alternative to the Japanese currency has started to … Read more
The Japanese yen, back near its weakest against the greenback in over three decades, may extend its bruising decline if the central bank sticks to a policy that’s keeping interest rates low, Suntory Holdings Ltd. Chief Executive Officer Takeshi Niinami predicts. The currency could fall to 170 yen per dollar, a level last seen in … Read more
I’m Shawn Donnan, a senior writer for economics in Washington. Today I’m looking at the strategic implications of China’s slowdown. Send us feedback and tips to ecodaily@bloomberg.net or get in touch on X, the social media platform formerly known as Twitter, via @economics. And if you aren’t yet signed up to receive this newsletter, you … Read more
China intensified efforts to stimulate the economy and support its currency, as investor concerns over the growth outlook persist. The central bank will trim the amount of foreign currency deposits banks are required to hold as reserves for the first time this year, the People’s Bank of China said Friday. The move came hours after … Read more
As per the United Nations, 180 currencies worldwide are officially recognised as legal tender. However, popularity and wide usage do not necessarily equate to the value or strength commanded by a currency. Simply put, the concept of currency strength revolves around the purchasing power of a nation’s currency when exchanged for goods, services, or other … Read more
China is escalating its defense of the yuan, pushing up funding costs in the offshore market to squeeze short positions and setting a new record with its stronger-than-expected reference rate for the currency. Analysts say the steps are designed to slow the pace of yuan depreciation rather than engineer a sustained rally. Forecasters at JPMorgan … Read more
Opinion | Stablecoins Can Keep the Dollar the World’s Reserve … The Wall Street Journal Source link
[Photo/VCG] The pressure toward the diversification of world currency reserves is longstanding. It intensified after 2008, but has escalated since 2022. It is a prime topic in the next BRICS Summit that”s likely to further intensify the trend. In 2016, US Treasury Secretary Jack Lew cautioned that “the more we condition the use of the … Read more