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  • Dec 18, 2024

Dollar rallies broadly, yen tumbles after BOJ keeps markets guessing

SINGAPORE (Reuters) -The dollar flirted with a two-year peak on Thursday after the Federal Reserve signalled a slower pace of rate cuts in 2025, while the yen slid after the Bank of Japan (BOJ) stood pat on rates and offered few clues on its monetary outlook. The BOJ kept interest rates steady earlier in the day, as expected, sending the yen down as much as 0.3%. The Japanese currency then extended losses to weaken past the 156 per dollar level for the first time in a month as BOJ Governor Kazuo Ueda spoke in a post-meeting press conference that kicked off at 0630 GMT.

  • Dec 18, 2024

Trump, not yet in office, already a figure in global economic policy

The world's economic reckoning with the incoming Trump administration kicked off in earnest this week, with the U.S. Federal Reserve flagging fewer rate cuts, a resignation in Canada over budgeting for tariffs and heightened focus on cryptocurrencies. The Fed cut rates as expected on Wednesday amid a busy year-end run of central bank meetings from Ottawa and Frankfurt to Tokyo and London that showed heightened uncertainty ahead of Donald Trump entering the White House in the new year. Indeed, Fed officials not only dialed back projections for rate cuts in the face of stubborn inflation, Chair Jerome Powell said some in the bank were also trying to judge how Trump's planned tariffs, lower taxes and immigration curbs might affect policy.

  • Dec 18, 2024

South Korean won hits 15-year low as hawkish Fed, domestic politics weigh

SEOUL (Reuters) -The South Korean won dropped to its weakest level in 15 years on Thursday, weighed down by risk-averse sentiment after the U.S. Federal Reserve's cautious stance on more interest rate cuts, as well as domestic political uncertainty. The U.S. central bank cut interest rates on Wednesday, as expected, but Federal Reserve Chair Jerome Powell said more reductions in borrowing costs now hinged on further progress in lowering stubbornly high inflation. U.S. central bankers now project they will make just two quarter-percentage-point rate reductions next year, half a percentage point less than anticipated in September, with higher projections of inflation for the first year of the new Donald Trump administration.

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