Currencies

Currency market action focused on developments with the Chinese yuan and the Hong Kong dollar.

US dollar hits 8-year peak versus yen, climbs over 1 per cent

A stack of US dollar notes in Virginia as the greenback soars to an 8-year high against the Japanese yen and rallied over 1 per cent versus other major currencies on Tuesday. Photo: AFP

The dollar climbed to its highest in nearly eight years against the Japanese yen on Tuesday and pushed the euro, already weighed down by anxieties over Greece’s financial crisis, below $1.09 for the first time in a month.

Wednesday, 27 May, 2015, 8:09am 1 comment

Yuan's SDR inclusion could do harm to China

China's interests, in the interim, may be best served by leaning against any such speculative demand for the yuan. Photo: Bloomberg

Yuan's SDR inclusion may harm China

17 Apr 2015 - 3:56pm 1 comment

Dollar bulls shift course, trim exposure in greenback

Dollar notes are scattered as the greenback recently hit 12 year highs. Photo: AFP

Some of the biggest dollar bulls in the global bond fund sector have reversed course in recent weeks, cutting exposure to the greenback amid concern the US Federal Reserve will delay a widely-anticipated interest rate hike.

17 Apr 2015 - 3:56pm

A win for Beijing as IMF eyes yuan for global role

Market impact of inclusion in SDR basket is likely to be limited due to yuan restrictions and slowing growth in China. Photo: Reuters

Later this year the IMF might include the Chinese yuan in its official basket of reserve currencies, a political and economic triumph for Beijing in the teeth of US opposition, but slowing growth in China is likely to limit the impact of the victory.

17 Apr 2015 - 3:56pm

China’s yuan ‘not ready’ to join IMF basket of currencies, says US

Premier Li Keqiang, right, greets US Treasury Secretary Jack Lew before their meeting in Beijing. Photo: Reuters

Treasury Secretary Jack Lew also softens stance on new China-led development bank, saying he was ready to welcome new lender if it adopts high standards of governance

17 Apr 2015 - 3:56pm 3 comments

US dollar owes its strength to one simple thing: the world's need to repay a mountain of debt

Cheap US dollars may have resulted in dollar-denominated debt-financed investments which now seem less attractive. Photo: AFP

The world has taken on a huge amount of dollar-denominated debt in recent years, but with the pace of global economic growth lagging the rate of increase in borrowing, the burden of that debt is rising.

17 Apr 2015 - 3:56pm 4 comments

HK losing ground in yuan payments

The yuan accounted for 1.81 per cent of the world's total last month, compared with a peak of 2.17 per cent in December. Photo: Simon Song

Hong Kong's market share in the global yuan business has been shrinking rapidly over the past two years, with other offshore yuan centres turning up the heat on the city as Beijing allows foreign financial centres to dabble in the business.

17 Apr 2015 - 3:56pm 1 comment

Pound losing its lustre as storm clouds gather over Britain

Deflation pressures in Britain are instilling fears that the next move in rates might be a cut rather than the rise that markets had recently been expecting. Photo: EPA

Pound loses lustre as storm clouds gather over Britain

17 Apr 2015 - 3:56pm 2 comments

Lagarde has message for Asia on risk of dollar rise

IMF managing director Christine Lagarde held talks with Premier Li Keqiang in Beijing on Monday. Photo: Reuters

Asian economies should enjoy, while they can, a respite from the recent months of US dollar appreciation as senior policymakers continue to press the argument that the eventual rise in US interest rates could have negative spill-over effects in Asia.

17 Apr 2015 - 3:56pm

Chart of the day: Cable clings to key support

Chart of the day: Cable clings to key support

Cable clings to key support

17 Apr 2015 - 3:56pm

Banks prepare for Asean race to become yuan hub

With two-way trade between Asean economies and China expected to grow to US$1 trillion by 2020, members of the association are competing to become a yuan currency trading hub. Photo: Xinhua

An integration push by banks in the Association of Southeast Asian Nations has come as booming bilateral trade with China and fast-expanding consumer goods markets are driving competition to become the region's yuan currency trading hub.

17 Apr 2015 - 3:56pm

A million reasons why US dollar still a good bet

Janet Yellen says the strength of the dollar also in part reflects the strength of the US economy. Photo: Reuters

Why US dollar still a good bet

17 Apr 2015 - 3:56pm

Stronger peso brings pain for Philippines

Remittances from Filipinos working overseas have helped fuel a strong increase in the peso since June last year. Photo: Nora Tam

Nearly US$40 billion a year piles into the Philippines, thanks to work its citizens do abroad or for outsourcing firms, but the windfall also brings pain through an overvalued currency and the risk of catching the "Dutch disease".

17 Apr 2015 - 3:56pm

HK banks launch fresh fight for yuan deposits

Hong Kong's yuan pool is shrinking. Photo: AFP

Hong Kong banks have started a new war for yuan deposits by raising interest rates as the city's yuan pool shrinks with the currency's outflows and slide against the US dollar.

17 Apr 2015 - 3:56pm

BOJ monetary easing signals a weaker yen

Bank of Japan governor Haruhiko Kuroda. Photo: AFP

The yen may weaken appreciably beyond 120 to the US dollar once the new Japanese financial year, beginning on April 1, gets into full swing, despite the view expressed last week by Etsuro Honda, an economic adviser to Prime Minister Shinzo Abe, that he is sceptical such a move could occur.

17 Apr 2015 - 3:56pm

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