Forex

Attention for the dollar this week has turned to the run-up in USD/Asia and what local authorities are prepared to do about it, wrote analysts at ING. This follows the dollar's surge on strong March CPI and retail sales data over the last week.

"Earlier this week we discussed how the trade-weighted renminbi had rallied 1.5% recently as global currencies depreciated against the dollar while the PBOC had held the line in USD/CNY. Since then, PBOC fixings have been steady,... (continue reading...)

UR/USD will struggle to sustain a move above 1.0700 today and remain bearish for the near term, said analyst says at ING.

"Speaking in Washington yesterday, ECB President Christine Lagarde said the European Central Bank watches FX fluctuations 'very carefully', and obviously, the ECB takes into account the impact FX moves have on inflation. Our team wrote on this subject yesterday," said Chris Turner, Global Head of Markets and Regional."

"The conclusion was that it... (continue reading...)

Analysts at ING warned of downside risks for GBP as the Bank of England turns dovish.

"Sterling softened late in the European session yesterday after Bank of England governor Andrew Bailey made some dovish remarks," wrote Francesco Pesole, ING FX Strategist. "He said that the UK faces less inflation risk than the US - a point that the IMF made earlier this week when noting the UK was running a negative output gap compared to a positive one in the US. This begs the... (continue reading...)

Fiscal risks are weighing on The Brazilian real, said analysts at ING.

"The Brazilian real has been one of the worst performers over the last week," wrote Chris Turner, ING's Global Head of Markets and Regional. "All the high-yielders have been hit on the unwind of carry trade strategies as volatility has risen. Yet the fiscal side, which is Brazil's Achilles Heel, has also reared its head again. Earlier this week Brazil's Finance Minister suggested that Brazil might... (continue reading...)

By Dhara Ranasinghe

LONDON (Reuters) -The U.S. dollar's dominant reserve currency status is likely to endure partly because even the most talked about alternative the Chinese yuan falls short as a credible challenger, Morgan Stanley said in a report on Thursday.

Rivalry with China, Russia's war in Ukraine, wrangling in Washington over the U.S. debt ceiling and rising debt levels have put the dollar's status as the world's dominant currency... (continue reading...)