Foreign Exchange Market

The global foreign exchange (forex) market has ballooned in recent decades as more and more economies liberalise their capital accounts. The Basel-based Bank for International Settlements said average daily turnover in global forex markets was an estimated US$3.98 trillion as of April 2010.

Former investor darling Emerging Markets hit by downgrades

A man calls on a cell phone outside a foreign exchange office in St. Petersburg, Russia. Emerging markets are getting hit by downgrades, with Russia's credit rating reduced to junk status by S&P. Photo: AP

The credit rating agencies call it “migration risk””.

Friday, 30 January, 2015, 4:00am

Singapore unexpectedly eases monetary policy to head off deflation, slowing growth

A money exchange dealer counts off Singapore dollars. The Monetary Authority of Singapore unexpectedly announced easing measures to head off deflation and slowing economic growth. Photo: AFP

Singapore’s central bank unexpectedly eased monetary policy ahead of its scheduled review in April, in a move that extends decisive shifts by global policymakers to counter deflationary pressures and slowing growth.

28 Jan 2015 - 1:19pm

Indonesia experience explains the Russian rouble’s rout

A cashier in a Russian savings bank shows a 500,000 rouble note. Indonesia's experience in the 1997/98 Asian financial crisis should give a lesson to what Moscow can do about the rouble's near free-fall. Photo: AFP

The Russian rouble ended 2014 in bad shape. For most of 2014, Russia faced ever-increasing economic sanctions which set the stage for what was to come late in the year: the collapse of oil prices and the announcement on November 10, 2014 that the rouble would be allowed to float. When it was allowed to do so, the currency sank like a stone.

27 Jan 2015 - 7:23am

China facing capital outflow pressures - SAFE

Yuan bank notes in a cashbox in Beijing. The State Administration of Foreign Exchange said the country is facing capital outflows at a time of rising volatility in the markets. Photo: Reuters

 

China faced pressures from capital outflows in recent months at a time of rising cross-border volatilities, a senior official at the State Administration of Foreign Exchange (SAFE) said.

22 Jan 2015 - 2:29pm 1 comment

Francly speaking, it’s not the same

Unlike the franc's erstwhile peg with the euro, Hong Kong's peg to the US dollar is a formal arrangement. Photo: Bloomberg

The shock delivered by the Swiss franc is a good reminder why Hong Kong must not ditch its peg to the US dollar, the city’s finance chief said in his weekly blog.

SCMP, January 19

 

20 Jan 2015 - 8:49am 7 comments

Stanchart revises down forecast for yuan’s value versus dollar in 2015

Chinese yuan bank notes in Beijing. Standard Chartered Bank revised downwards its forecast of the value of the yuan against the US dollar in 2015. Photo: Reuters

Standard Chartered has sharply revised down its forecast on the Chinese yuan’s value against the US dollar in 2015, on speculation Beijing may be reluctant to allow its currency to continue strengthening amid subdued regional trade.

12 Jan 2015 - 4:02pm

Yuan's sharp drop puts investors on alert for reversal of rising trend

Investors are being forced to take a closer look at the prospects for the yuan's exchange rate. Photo: Reuters

The yuan has recently been something of a safe haven among emerging market currencies, yet market players have learned from a bloody lesson over the past week that it is no longer an easy, one-way bet.

A sharp fall against the US dollar both onshore and offshore made the yuan the worst performing currency within emerging Asia this month.

3 Mar 2014 - 4:52pm 4 comments

New York regulator probing biggest foreign exchange trading banks

Martin Wheatley said the allegations Britain’s Financial Conduct Authority is looking into are “every bit as bad” as in the Libor manipulation scandal. Photo: Reuters

New York banking regulator Benjamin Lawsky is seeking documents from some of the biggest banks in foreign exchange trading, including Deutsche Bank, Goldman Sachs and Barclays, a source familiar with the matter said Wednesday, as a global probe into possible market manipulation widens.

6 Feb 2014 - 3:45pm

French bank chief targets London’s euro status

Christian Noyer, head of France’s central bank has his eyes on London’s euro business. Photo: Bloomberg

Britain should relinquish its status as the euro’s financial hub in order to give eurozone members more control over the single currency, France’s central bank governor has said.

In an interview published in Monday’s Financial Times, Christian Noyer of the Banque de France claimed there was “no rationale” for the City of London’s leading role in euro finance.

3 Dec 2012 - 9:37am

Yuan hailed as the world reserve currency

The yuan is challenging the US dollar as the world's most influential currency, particularly in the East Asia region. Photo: Reuters

Its supporters excitedly describe it as rise of the "redback" - red for communist China as opposed to the greenback of the US. Now two distinguished academics have joined a chorus of bankers anxious to share in the lucrative business opportunities they see in the internationalisation of the yuan to challenge the US dollar as the global currency of choice.

7 Nov 2012 - 3:36am

European stocks mixed, sterling gains as Britain exits recession

UK economy sees return to growth. Photo:AFP

European stock markets posted mixed results on Thursday but the pound gained ground after data showed that Britain had marched smartly out of recession, news that offset a sharp drop in profit at Spanish banking giant Santander.

26 Oct 2012 - 3:11am

Net money inflow takes heat off China's central bank

The spot rate has hit historic highs against the greenback. Photo: AP

The surge of foreign exchange into the mainland last month is expected to ease pressure for monetary loosening in the near term.

But the influx is unlikely to persist, given the gloomy trade outlook and lack of appreciation in the yuan, analysts say.

24 Oct 2012 - 4:07am

Uncertainties over central bank policies take shine off carry trade

The US$4 trillion-a-day foreign-exchange market is losing confidence in central banks' abilities to boost a struggling world economy.

23 Oct 2012 - 4:26am

Business Digest, September 13, 2012

Annual investment in shopping malls and shops may rise. Photo: Bloomberg

Capital outflows revised lower

13 Sep 2012 - 3:00am

Shanghai B-share losses mount for fourth session

Shanghai's hard-currency B shares dropped for the fourth consecutive day yesterday, posting its biggest one-day loss in 10 months, amid rising fears about the tiny market's fate.

The Shanghai B-share Index lost 12.27 points, or 5.64 per cent, to 205.225. It was the biggest daily decline since the indicator tumbled 6.87 per cent on September 22 last year.

31 Jul 2012 - 12:00am

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