GulfBase Live Support
Leave a message and our representative will contact you soon
29/11/2015 07:44 AST
The euro posted its longest stretch of weekly losses versus the yen since the shared currency’s 1999 creation as the European Central Bank prepares to meet.
The 19-nation currency has fallen versus 13 of its 16 major peers this month, and is headed for its biggest monthly slide since March against the dollar, after ECB President Mario Draghi put markets on notice for additional monetary easing at the December 3 meeting.
Further stimulus may help the region’s central bank bolster sluggish inflation, with Draghi saying last week that the institution will do what’s necessary to quickly lift price gains toward its goal. Investors are selling the euro in preparation, as anticipation builds that policymakers will try to surprise markets with a package of stimulus encompassing both significant rate cuts and further quantitative easing.
“What we’ve seen as euro-dollar’s drifted lower is a growing flirtation with the idea that, once again, they’re going to be able to out-deliver market expectations,” said Daragh Maher, head of US foreign-exchange strategy at HSBC Holdings Plc in New York. “The irony of that is that as you anticipate being out-delivered then, of course, your expectation of what constitutes out-delivery gets bigger and bigger, so that’s a risk to the topside for euro-dollar.”
The shared currency was little changed at 130.09 yen as of 5pm in New York. It has dropped about 5 per cent during the past seven weeks. The euro fell 0.2 per cent to $1.0593, down 0.5 per cent on the week, and reached a seven-month low on a closing basis.
Draghi’s pledge
The euro has tumbled 12 per cent against the dollar this year, the most in a decade.
Movements in swap rates since the ECB’s last meeting in October indicate that markets are looking for Draghi to deliver at least a 14 basis-point cut to the deposit rate on Thursday, along with an expansion of QE, Australia & New Zealand Banking Group Ltd. estimates.
The prospect of Draghi cutting the bank’s deposit rate by 10 basis points, or 0.1 percentage point, is fully priced into futures markets, data compiled by Bloomberg show.
“Draghi’s track record is that he has rarely disappointed,” said Andreas Koenig, the Dublin-based head of European foreign exchange at Pioneer Investments, which oversees $242 billion (Dh888 billion). “He always delivers. Buying euros will be only for correction moves.”
Koenig is betting against the euro heading into the meeting, taking a third of his position through euro forwards, and two thirds through options. The make-up of the position reflects the risk Draghi may not be able to exceed market expectations this time around, he said.
Gulfnews
Ticker | Price | Volume |
---|---|---|
SABIC | 114.77 | 5,915,941 |
SAMBA | 26.98 | 1,138,683 |
STC | 83.41 | 257,644 |
DARALARKAN | 13.47 | 74,648,349 |
US Dollar | 1.00 |
Saudi Riyal | 3.75 |
Derham Emirati | 3.67 |
Qatari Riyal | 3.65 |
Kuwaiti Dinar | 0.30 |
Bahraini Dinar | 0.38 |
Omani Riyal | 0.39 |
Euro | 0.81 |
British Pound | 0.71 |
Japanese Yen | 104.70 |
05/04/2018
Oman has the means to maintain its currency peg and has no plans to change it even though the decline in oil prices has hurt its finances, central bank Governor Tahir Al Amri said.
Oman’s g
Gulf News
02/04/2018
China’s yuan firmed against the dollar on Friday and is set to post its biggest quarterly gain in a decade, as the country attracts capital inflows and US trade frictions bolstered expectations of a
Gulf News
01/04/2018
The US dollar’s share of currency reserves reported to the International Monetary Fund declined in the final quarter of 2017 to a four-year low, as other currencies’ shares of reserves grew, data rel
Gulf News
29/03/2018
The US Dollar Index, a measure of the value of the US dollar against a basket of currencies, teetered and dropped to quarterly lows in March, which also happen to be the lowest the index has been sin
The National
29/03/2018
Turkey’s lira weakened beyond the psychologically important level of 4.0 to the US dollar yesterday, bringing it close to a record low, as concerns about double-digit inflation, and politics, continu
Gulf Times