Analysis: Currencies

Exclusive-China plans record budget deficit of 4% of GDP in 2025, say sources

Chinese leaders agreed last week to raise the budget deficit to 4% of gross domestic product next year, its highest on record, while maintaining an economic growth target of around 5%, two sources...

Political jitters ripple ahead of cenbank fest

A look at the day ahead in Asian markets.  Asian market sentiment is likely to remain subdued on Tuesday following the release of mixed Chinese economic data the day before, as...

Currencies: It's very quiet

The dollar continues to benefit from favorable winds, but this does not yet call into question our consolidation scenario. Forex traders seem to be holding back, waiting to decipher the language that...

Bank Indonesia to hold rates this month as FX stability outweighs domestic concerns

Bank Indonesia will hold its key interest rate steady on Wednesday to support the rupiah, according to a narrow majority of economists in a Reuters poll, who decisively expected a rate cut on Dec. 18...

Iran currency slips to new lows amid U.S., Europe tensions

The Iranian currency extended its fall on Saturday, hitting a new all-time low against the U.S. dollar amid uncertainties about Donald Trump's imminent arrival in the White House and tensions with the...

Exclusive-Yellen won't rule out sanctions on Chinese banks, curbs on 'dark fleet' oil tankers

U.S. Treasury Secretary Janet Yellen told Reuters on Friday that the U.S. is looking at further sanctions on dark fleet tankers and will not rule out sanctions on Chinese banks as it seeks to reduce...

US import prices barely rise in November

U.S. import prices barely rose in November as increases in the costs of food and fuels were partially offset by decreases elsewhere, thanks to a strong dollar and suggesting that inflation pressures...

BOJ to skip rate hike in December, majority of economists say

The Bank of Japan will hold interest rates at 0.25% at its December policy meeting as it assesses overseas risks and next year's wage outlook, a majority of economists said in a Reuters poll, in a...

BOJ's rate hike plans clouded by small firms' wage woes

Japan's small firms are spending far more of their profits on wages than their bigger counterparts and could struggle to keep hiking pay, casting doubt on whether wage gains could broaden enough for...

Trump trade adviser warns against currency manipulation as China mulls weaker yuan

A top trade adviser to President-elect Donald Trump told Reuters on Thursday that the new administration would not look fondly on any attempt by China to manipulate its currency, responding to a...

US producer price increase exceeds expectations in November

U.S. producer prices rose more than expected in November amid a surge in the cost of food, but a moderation in the prices of services offered hope that the disinflationary trend remains in place. ...

US consumer prices post largest gain in seven months in November

U.S. consumer prices increased by the most in seven months in November, but that is unlikely to discourage the Federal Reserve from cutting interest rates for a third time next week against the...

Bank of Canada likely to reduce interest rate by 50bps

The Bank of Canada is poised to cut its key policy rate by another 50 basis points on Wednesday as weak unemployment numbers and poor growth underscore an economy that needs support, economists and...

Weaker Chinese yuan talk raises spectre of FX race to the bottom

High-level discussions in China about allowing its currency to weaken next year underscore the risk for investors and companies that big foreign exchange moves are coming as U.S. tariffs shift global...

Exclusive-Chinese authorities are considering a weaker yuan as Trump trade risks loom, sources say

China's top leaders and policymakers are considering allowing the yuan to weaken in 2025 as they brace for higher trade tariffs in a second Donald Trump presidency in the United States. ...

Priced for perfection into CPI

A look at the day ahead in European and global markets from Tom Westbrook Markets head into the release of U.S. inflation figures expecting they won't get in the way of an interest rate...

How likely is a Bank of Japan rate hike next week?

The Bank of Japan holds its final policy meeting for the year next week with its decision to be announced just hours after that of the U.S. Federal Reserve's expected interest rate cut. ...

Japan manufacturers' mood turns negative for the first time in 10 months- Reuters poll

Japanese manufacturers' business sentiment soured further in December amid worries over U.S. protectionist policies and the Chinese economy, with pessimists outnumbering optimists for the first time...

Federal Reserve to cut rates by 25 bps on Dec. 18, pause in January- Reuters poll

The U.S. Federal Reserve will cut interest rates by 25 basis points on Dec. 18, according to 90% of economists polled by Reuters, with most expecting a pause in late January amid concerns about rising...