Analysis: Currencies

Bessent says high US interest rates may have caused housing recession

Parts of the U.S. economy, particularly housing, may already be in recession because of high interest rates, U.S. Treasury Secretary Scott Bessent said Sunday, repeating his call for the Federal...

Banks tap Fed Standing Repo Facility in record numbers amid month-end pressures

Federal Reserve liquidity facilities caught fire on Friday as month-end pressures pushed a key lending tool to a record level of usage. The Fed's Standing Repo Facility lent a total of...

Russia plans to issue debut sovereign yuan-denominated bonds, sources say

MOSCOW -Russia is planning to issue its debut yuan-denominated bond on the local market this year, sources told Reuters, offering an investment option for the vast amounts of yuan liquidity...

Canada's GDP contracts in August, might avoid a recession in third quarter

OTTAWA -Canada's GDP contracted in August  against a consensus estimate of flat growth, data showed on Friday, and an advance estimate suggested the economy might escape a recession in the third...

Indian central bank's forward book expands after six months as it mounts rupee defense

MUMBAI -India's central bank increased its short dollar forward positions by $6 billion in September, marking the first rise in six months, data released on Friday showed, as it intensified efforts...

Core consumer prices in Japan's capital accelerate, keep BOJ under pressure

TOKYO -Core inflation in Japan's capital accelerated in October and stayed above the central bank's 2% target, data showed on Friday, keeping alive market expectations for a near-term interest rate...

US weekly jobless claims fall, economists estimate

WASHINGTON -The number of Americans filing new applications for unemployment benefits fell last week, economists estimated on Thursday, though new job opportunities for those who are laid off...

ECB hopes to launch digital euro pilot in 2027

FLORENCE, Italy -The European Central Bank said on Thursday it could launch a pilot of its digital currency in 2027 provided it can secure timely approval from lawmakers for a project it deems vital...

Bank of Japan keeps rates steady

TOKYO -The Bank of Japan held off on raising interest rates on Thursday but repeated its pledge to continue increasing borrowing costs if the economy moves in line with its projections. ...

India to impose 30% import duty on yellow peas from November 1

MUMBAI -India has imposed a 30% import duty on yellow peas, effective November 1, according to a government notification issued late on Wednesday. Shipments with a bill of lading dated...

Yen weakens after BOJ holds rates steady, Fed boosts dollar

NEW YORK -The Japanese yen tumbled against the U.S. dollar on Thursday after the Bank of Japan adopted a less hawkish tone than traders expected, while the greenback was boosted after Federal Reserve...

Hong Kong Monetary Authority cuts interest rate tracking Fed move, banks follow

HONG KONG -Hong Kong's de-facto central bank lowered its base interest rate by 25 basis points to 4.25% on Thursday, tracking a cut by the U.S. Federal Reserve. It was the second easing...

BOJ chief signals chance of rate hike soon, says wage momentum key

TOKYO -The Bank of Japan kept interest rates steady on Thursday, with its governor sending the strongest signal yet that a rate hike was possible as soon as December depending on the outlook for...

Fed lowers rates, but Powell suggests move may be the last of 2025

WASHINGTON -A policy divide within the U.S. central bank and a lack of federal government data may put another interest rate cut out of reach this year, Federal Reserve Chair Jerome Powell said on...

US pending home sales flat in September; job market worries likely dissuading buyers

WASHINGTON -Contracts to purchase previously owned U.S. homes were unexpectedly unchanged in September, likely as worries about the labor market and economic uncertainty kept prospective buyers on...

Bank of Canada cuts 2025 and 2026 forecasts, cites US trade policy

The Bank of Canada on Wednesday slashed its growth forecasts for both 2025 and 2026, citing the effect of U.S. trade policy, and predicted the economy would recover slightly in 2027. In...

Key US mortgage rate drops to 13-month low, industry group says

The interest rate on the most popular U.S. home loan dropped last week to a 13-month low after a key reading of inflation came in lower than expected, cementing expectations for another Federal...

Exchange rate is not a policy tool to fight tariffs, India central bank deputy governor says

MUMBAI -The Indian rupee's exchange rate is not a policy tool to fight trade tariffs, a senior Indian central bank official said on Wednesday. The exchange rate does not serve as a...

South African rand gains on Fed rate cut expectations

JOHANNESBURG -The South African rand gained on Wednesday as investors braced for a day headlined by the Federal Reserve's decision and signs of easing U.S.-China trade tensions. At 1414...