Views Article – Sharenet Wealth

Forex, News

Global growth concerns boost safe havens: yen, Swiss franc

* New Zealand central bank cuts rates to record low * India, Thailand’s central banks also cut rates * Safe havens in demand on global growth concerns (New throughout, updates trading and comments to U.S. market open, new byline, changes dateline, previous LONDON) By Karen Brettell NEW YORK, Aug 7 (Reuters) – Safe haven currencies the Japanese yen and Swiss franc gained on Wednesday after New Zealand’s central bank cut interest rates by more than expected, feeding concerns about the weak global economy. The Reserve Bank of New Zealand cut its official cash rate to a record low of 1% and flagged the possibility of using negative rates to stimulate the economy, sending its currency to 3-1/2 year lows. The Reserve Bank of India and the Bank of Thailand also cut rates. While central banks globally are adopting a more dovish outlook, investors remain worried. “You’ve seen a couple of central banks ease policy today, some by more than expected, and you’re still seeing a more cautious market backdrop,” said Erik Nelson, a currency strategist at Wells Fargo in New York. “I think there may still be some lingering concern over how much this easing will really support the global economy, or just maybe the idea of monetary policy impotence is in investors minds here,” Nelson said. The New Zealand dollar was last down 1.47% at $0.6427 , bouncing off the session low of $0.6379. The Aussie fell 0.49% to $0.6725 as markets ramped up bets that Australia would cut rates faster and deeper than expected. The session low for the Australian dollar was $0.6678, the lowest since early 2009. The Japanese yen gained 0.66% to 105.74 against the greenback, nearing an eight-month high of 105.51 reached on Tuesday. The Swiss franc gained 0.37% to 0.9727 against the U.S. currency. The escalating U.S.-China trade war is adding to economic headwinds and hurting business sentiment. Last week, U.S. President Donald Trump said he would impose more tariffs on Chinese goods. On Monday, China responded by allowing its currency to weaken past 7 per dollar for the first time since 2008, and Washington labeled Beijing a currency manipulator. The yuan weakened on Wednesday, but held above an 11-year low reached the previous session, before Beijing appeared to take steps to stabilize the currency. The offshore yuan fell 0.52% to 7.0891. ======================================================== Currency bid prices at 9:24AM (1324 GMT) Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid Previous Change Session Euro/Dollar EUR= $1.1216 $1.1198 +0.16% -2.21% +1.1220 +1.1180 Dollar/Yen JPY= 105.7400 106.4700 -0.66% -4.10% +106.4700 +105.7200 Euro/Yen EURJPY= 118.64 119.22 -0.49% -6.02% +119.2800 +118.4600 Dollar/Swiss CHF= 0.9727 0.9763 -0.37% -0.89% +0.9797 +0.9725 Sterling/Dollar GBP= 1.2143 1.2166 -0.19% -4.81% +1.2190 +1.2122 Dollar/Canadian CAD= 1.3328 1.3278 +0.38% -2.27% +1.3344 +1.3269 Australian/Doll AUD= 0.6725 0.6760 -0.49% -4.60% +0.6782 +0.6678 ar Euro/Swiss EURCHF= 1.0912 1.0933 -0.19% -3.04% +1.0959 +1.0912 Euro/Sterling EURGBP= 0.9233 0.9200 +0.36% +2.77% +0.9241 +0.9189 NZ NZD= 0.6427 0.6523 -1.47% -4.32% +0.6557 +0.6379 Dollar/Dollar Dollar/Norway NOK= 8.9360 8.9046 +0.35% +3.44% +8.9500 +8.8888 Euro/Norway EURNOK= 10.0245 9.9730 +0.52% +1.20% +10.0373 +9.9613 Dollar/Sweden SEK= 9.6154 9.5824 +0.45% +7.27% +9.6254 +9.5643 Euro/Sweden EURSEK= 10.7862 10.7377 +0.45% +5.09% +10.7956 +10.7253 (Additional reporting by Tommy Wilkes in London; Editing by David Gregorio)

© 2019 Thomson Reuters. All rights reserved. Reuters content is the intellectual property of Thomson Reuters or its third party content providers. Any copying, republication or redistribution of Reuters content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters. Thomson Reuters shall not be liable for any errors or delays in content, or for any actions taken in reliance thereon. "Reuters" and the Reuters Logo are trademarks of Thomson Reuters and its affiliated companies.
Array ( )