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Tag: foreign exchange

  • US Dollar Drops Across Asia as AI Debt Jitters Shake Currency Markets

    US Dollar Drops Across Asia as AI Debt Jitters Shake Currency Markets

    The US dollar fell 0.25 per cent to 101.77 on Friday. The drop puts the greenback on course for a 0.45 per cent weekly decline as debt strains across the tech sector rattled global markets.

    A selloff across artificial intelligence infrastructure providers drained momentum from the American currency. That handed gains to the Japanese yen, the euro and the Swiss franc.

    Traders redirected capital away from dollar assets. Heavy losses across tech hardware and data centre operators raised doubts about near-term returns on computing infrastructure. The pullback broke four consecutive weeks of dollar gains against the yen. On Friday, the Japanese currency traded up 0.28 per cent for the week at 157.89 per dollar.

    Tech debt stress spills into currency trades

    Credit stress across the artificial intelligence supply chain triggered the shift in foreign exchange sentiment. Data centre operators face mounting financing expenses. Bond investors now question whether operating cash flows can service the borrowing loads accumulated during the recent hardware expansion.

    Cloud provider CoreWeave became the focal point of market anxiety this week. The company carries about $50 billion in debt. Yields on its April-issued notes climbed to roughly 15 per cent, while credit default swaps jumped to about 1,000 basis points. That pricing signals a 63 per cent probability of default over five years.

    Pressure on high-yield debt shook equity valuations across hardware suppliers. Options traders responded by buying downside protection at record volumes. The fallout altered currency dynamics. Instead of serving as a traditional haven during equity declines, the dollar softened as investors priced in reduced US economic momentum and lower bond issuance.

    Central banks chart divergent regional paths

    In Tokyo, monetary policy signals provided direct support for the yen. Bank of Japan Governor Kazuo Ueda confirmed on Friday that authorities will keep raising benchmark interest rates as economic and financial conditions develop.

    That stance contrasts with expectations in Washington. Traders assign an 87 per cent probability to the Federal Reserve holding interest rates steady at its late October meeting. Softer US yields earlier in the week removed support from the greenback, even after firm inflation data.

    Elsewhere in the Asia-Pacific region, the Australian dollar climbed 0.55 per cent on Friday to $0.6959. Despite the daily rebound, the currency remained down 0.3 per cent over the week. A weak domestic employment report dampened expectations of further rate increases by the Reserve Bank of Australia.

    European currencies attract defensive capital flows

    European currencies captured much of the capital rotating out of dollar assets. The euro rose 0.14 per cent to $1.1235 on Friday. The move built on a 0.56 per cent surge on Thursday, securing a 0.39 per cent weekly advance.

    Switzerland’s currency drew the strongest defensive buying among major peers. The Swiss franc tracked toward a 0.61 per cent weekly climb against the dollar. Investors expect Swiss policymakers will keep benchmark interest rates at zero rather than pushing borrowing costs into negative territory.

    Equity investors also adjusted their exposure. Funds rotated out of high-valuation technology names and into consumer products and healthcare shares to protect portfolio returns.

    Corporate capital plans face valuation hurdle

    Tech spending drove the market correction after months of heavy debt financing for data centre construction and processor purchases. Tech giants Alphabet and Meta Platforms expanded their balance sheets to secure computing capacity. Specialized cloud operators relied on private debt and bond markets.

    Market volatility has already disrupted corporate fundraising schedules. Smart ring maker Oura postponed its planned US initial public offering. Private artificial intelligence developers such as Anthropic face heightened scrutiny over their revenue multiples ahead of potential public listings.

    Currency traders are looking ahead to the Federal Reserve rate decision later this month. Upcoming third-quarter corporate earnings will reveal whether enterprise software revenue can support those debt commitments.

  • Australian Retailers Link TradingView to Brokers to Track Currency Swings

    Australian Retailers Link TradingView to Brokers to Track Currency Swings

    Australian retail importers are turning to TradingView to monitor foreign exchange movements and freight-linked oil prices before supply chain shifts impact quarterly margins.

    The software pairs live market feeds with execution accounts at regulated brokers such as EasyMarkets, which has operated since 2001, allowing operators to respond to price swings without switching screens.

    How Live Feeds Connect to Trading Desks

    TradingView operates as an analytical interface rather than a custodian of funds. The platform pulls historical and live pricing data across foreign exchange pairs, freight-sensitive commodities, and equity indices into customizable chart layouts.

    To place market orders, users link the platform directly to third-party brokerage accounts. Regulated brokers such as EasyMarkets, established in 2001 and licensed by the Australian Securities and Investments Commission alongside the Cyprus Securities and Exchange Commission, handle execution through fixed-spread models without charging trade commissions.

    Managing Exposure on Inbound Shipments

    Most retail operators sourcing stock from Asian manufacturing hubs face exposure to the Australian dollar against the US dollar and regional currencies. Freight charges also fluctuate with global crude oil benchmarks.

    Tracking these inputs in real time allows procurement managers to identify price pressures weeks before supplier invoices arrive. Automated tools, including guaranteed stop-loss orders and negative balance protection, give businesses predefined price exits if market movements accelerate against their open positions.

    Risks in Derivative Contracts

    Direct hedging through contracts for difference carries distinct balance-sheet hazards for non-financial companies. CFDs track underlying price movements without conferring ownership of physical commodities or currency reserves, amplifying both gains and losses through borrowed capital.

    ASIC maintains public guidance warning commercial operators about derivative risk controls. Retail businesses using charting software must separate speculative positions from baseline inventory budgeting to avoid unexpected cash outflows during currency sell-offs.

    Balancing Tools Against Central Bank Benchmarks

    The move toward integrated technical charting follows prolonged margin compression across Australian import sectors. Operators that previously relied solely on end-of-month bank statements now monitor daily exchange rate channels to negotiate supplier pricing terms.

    Businesses tracking Australian dollar trends without opening trading accounts can cross-reference platform indicators with official foreign exchange rate datasets published daily by the Reserve Bank of Australia.

  • US Lawmaker Asks Fed Chair Kevin Warsh to Review Hong Kong Funding Access

    US Lawmaker Asks Fed Chair Kevin Warsh to Review Hong Kong Funding Access

    A US lawmaker asked Federal Reserve Chair Kevin Warsh on 9 October 2026 to review Hong Kong’s access to an emergency short-term dollar funding facility. The request cited Beijing’s global yuan push.

    Hong Kong financial operations face limited fallout from the proposal. The city does not rely on the emergency window for regular financing.

    The Emergency Funding Review

    The facility supplies short-term US dollar liquidity during market disruptions. Washington lawmakers want access re-evaluated as China expands renminbi cross-border settlements and builds alternative payment rails.

    This push targets Hong Kong’s access to central bank swap lines and repo facilities managed in Washington. Curtailing that access would signal an attempt to weaponize core central bank liquidity mechanisms over currency competition.

    Impact on Hong Kong Financial Operators

    Immediate disruption remains negligible for lenders, treasury desks, and corporate borrowers in Hong Kong. Local banks run on deep foreign exchange reserves and private market liquidity rather than standing central bank borrowing lines.

    Market confidence carries the real risk. Restricting access to standard central bank liquidity safety nets creates friction for international institutions managing dollar-denominated assets through Hong Kong.

    Risks to Global Dollar Dominance

    Politicizing access to Federal Reserve backstops creates unintended consequences for the United States. Blocking commercial financial centers from dollar liquidity tools encourages global market participants to diversify reserves into alternative currencies.

    Narrowing access accelerates the shift toward non-dollar settlement platforms across Asia. The policy stance risks undermining the dollar’s status as the global reserve benchmark faster than foreign policy initiatives can contain competing currencies.

    Next Steps for the Fed

    Scrutiny over offshore dollar clearing has increased alongside geopolitical competition between Washington and Beijing. The proposal reflects broader legislative efforts to examine ties between American central banking infrastructure and Asian clearing hubs.

    The Federal Reserve has not issued a formal response to the lawmaker’s request, leaving the review timeline open.

  • Indian Parents Can Tap USD 500,000 Annual LRS Quota for Overseas Property

    Indian Parents Can Tap USD 500,000 Annual LRS Quota for Overseas Property

    Indian parents can remit up to $500,000 jointly per financial year under central bank rules. The funds can cover overseas residential property acquisitions for non-resident children.

    The Reserve Bank of India caps individual transfers under the Liberalised Remittance Scheme at $250,000 across each twelve-month period running from 1 April to 31 March.

    Under the Foreign Exchange Management Act, eligible resident parents can pool quotas to finance offshore real estate alongside their Non-Resident Indian or Overseas Citizen of India children. The scheme applies strictly to individuals. Companies, partnership firms, Hindu Undivided Families and private trusts cannot access the facility. Family offices and high-net-worth buyers must structure offshore capital deployments directly through individual banking channels.

    Structuring Remittances as Gifts or Loans

    Capital sent abroad must be classified either as an outright gift or an interest-bearing debt instrument. Gifts received by non-resident children from resident parents carry an exemption from Indian income tax, regardless of transaction value. Remitters must complete Form A2 at an Authorised Dealer bank branch. They must also verify permanent account number records and maintain documentation including gift deeds and proof of familial relationship.

    Loan structures require formal loan agreements detailing repayment schedules, governing law and applicable interest rates. Sudhakar Sethuraman, Partner at Deloitte India, said that a comprehensive agreement should specify the “tenure, interest, repayment schedule, governing law, etc.” Capital transfers routed as rupee gifts into Non-Resident Ordinary accounts remain legally permissible under the annual quota. However, repatriation hurdles make direct foreign currency wire transfers the preferred conduit for property buyers.

    Tax at Source and Banking Friction

    Outbound capital transfers trigger Tax Collected at Source once remittances cross the threshold of Rs 10 lakh in a single financial year. Authorized dealer banks levy source taxes at 5 percent or 20 percent depending on transaction codes. Buyers can adjust the deduction against total domestic tax liabilities when filing annual returns.

    Cross-border buyers also absorb banking fees, currency conversion margins and foreign exchange spreads that trim net transaction proceeds. Unused annual quotas expire each year on 31 March and do not roll over. Buyers pursuing multi-year overseas asset acquisitions must stage payments across financial calendars.

    Regulatory Compliance for Offshore Buyers

    Indian buyers entering overseas housing markets face dual-jurisdiction compliance checks before closing property purchases. Authorized dealer banks conduct know-your-customer assessments. They scrutinize tax records to confirm the domestic source of funds before approving Form A2 foreign exchange releases.

    Non-resident children receiving the capital must concurrently comply with local asset disclosures and foreign investment filings in the jurisdiction where the real estate asset sits. Cross-border banking compliance teams routinely review source-of-wealth documentation. They verify that offshore transfers match domestic regulatory filings.

    Cross-Border Wealth Flow Dynamics

    The framework mirrors capital controls across emerging Asian markets, where regulators balance private wealth mobility against domestic currency stability. Restricting offshore real estate funding to resident individuals rather than corporate vehicles preserves direct visibility over private wealth outflows.

    Families financing high-value residential assets in gateway cities like London, Dubai and Singapore remain reliant on strict annual remittance windows. With individual caps fixed at $250,000, multi-million-dollar property purchases require combining offshore earnings with multi-year domestic transfers while absorbing upfront source taxes.

  • Bangladesh Taka Strengthens Against US Dollar After 5.5 Years

    Bangladesh Taka Strengthens Against US Dollar After 5.5 Years

    The Bangladeshi taka has strengthened against the US dollar, ending a continuous depreciation trend spanning five and a half years, according to a report from Bangladesh Bank.

    Between August 30 and September 17 this year, the local currency appreciated by 0.77 percent against the greenback as the dollar rate dropped from a record high of Tk 123.95 to Tk 123.00.

    On a point-to-point basis from June last year to June this year, the taka gained 0.06 percent, reversing an unbroken slide from 2021 that had devalued the currency by 45.05 percent.

    Reversing a Five-Year Downward Spiral

    Dhaka saw its first sustained currency recovery since late 2020. That year, lower pandemic import bills and solid remittances allowed the taka to firm slightly to Tk 84.80.

    Import pressures resumed in 2021, pushing the dollar to Tk 85.80 by year-end. Post-pandemic commodity shocks and the war in Ukraine accelerated the slide in 2022, lifting the dollar rate 23.37 percent to Tk 105.85. The taka fell further to Tk 110.00 in 2023, Tk 120.00 in 2024, and Tk 122.33 by December 2025.

    Over the five-year span, the greenback climbed by Tk 38.20. That loss squeezed corporate margins across manufacturing hubs. It also inflated domestic retail prices on consumer staples.

    Divergence from Regional Currencies

    Trends across South and East Asia diverged from Bangladesh during the same period. Between June 2025 and June 2026, the South Korean won dropped around 11 percent against the greenback. The Sri Lankan rupee shed more than 10 percent.

    India’s rupee weakened by nearly 9.5 percent over the 12-month period, while the Indonesian rupiah lost about 9 percent. Modest gains appeared elsewhere. Both the Malaysian ringgit and Chinese yuan gained nearly 4 percent, and the Pakistani rupee firmed by about 2 percent.

    These divergent currency paths reshape cross-border sourcing costs for regional retailers and consumer goods manufacturers. Retailers buying finished goods and packaged foods from India face lower dollar procurement costs. Meanwhile, Bangladeshi factories buying dollar-denominated raw materials gain immediate relief on input invoices.

    Relief for Importers and Retail Supply Chains

    Lower landed import bills directly benefit buyers of refined fuel, edible oils, industrial chemicals, and wheat. Importers spent the past three years absorbing double-digit depreciation that pushed landed costs to records.

    Steady foreign exchange pricing removes the immediate need for emergency shelf-price increases at retail. Lower import costs ease pressure on household purchasing power. That buying power had contracted under cumulative double-digit retail inflation.

    Local-currency balance sheet losses will narrow for domestic conglomerates holding dollar-denominated commercial debt. Servicing foreign loans grew far more expensive as the dollar climbed from Tk 85 to nearly Tk 124 over five years.

    Trade Balance and Reserve Targets Ahead

    Maintaining currency stability now rests on managing import demand and keeping remittances flowing through official channels. Bangladesh Bank has relied on targeted dollar purchases to rebuild gross reserves. It avoided defending fixed pegs through emergency dollar sales.

    Corporate treasurers and retail supply directors are tracking import volumes heading into the final quarter. Any surge in capital goods orders or energy demand will test the central bank’s ability to hold the exchange rate near Tk 123.

  • US Dollar Dips to VND26,200 as State Bank of Vietnam Sets Record Rate

    US Dollar Dips to VND26,200 as State Bank of Vietnam Sets Record Rate

    Vietcombank trimmed its selling rate for the US dollar by 0.02 percent to VND26,200 on Friday, easing pressure on commercial foreign exchange counters across Vietnam.

    The State Bank of Vietnam lifted its daily central reference rate by 0.02 percent to a fresh peak of VND25,637. That adjustment set the official trading band for commercial lenders while unofficial street trade moved in the opposite direction.

    Divergence Between Official Banks and Street Trade

    Unofficial money changers pushed the greenback up by 0.23 percent to trade near VND25,880. The gap left street desks pricing dollars below the headline counters at major state lenders, reversing the usual premium seen during periods of sharp currency volatility.

    Trading desks in Ho Chi Minh City and Hanoi handled the adjustments without disruption to trade settlement. Commercial importers purchasing intermediate goods face stable landed costs at these levels, though the high central baseline keeps financing charges elevated across foreign currency credit lines.

    Regional Pressures and Central Bank Policy

    Currency desks across Southeast Asia monitored broader central bank actions as policymakers continued tightening cycles to curb imported inflation. The Bank of Japan raised its benchmark rate to 1.25 percent, marking a 31-year peak for Japanese borrowing costs.

    That policy tightening softened the yen by 0.5 percent to 156.75 per dollar, even as Tokyo’s currency retained a month-to-date gain of nearly 2 percent. A fluctuating yen shifts sourcing calculations for Vietnamese consumer electronics assemblers and industrial component suppliers that invoice contracts in Japanese currency.

    Global Dollar Index Softens Against Major Pairs

    International foreign exchange trading saw the broader US dollar index slide 0.1 percent to 100.1900. The slight retreat gave Asian central banks room to adjust baseline pegs without triggering sharp outflows from local debt markets.

    European currencies notched modest gains during the session. The British pound strengthened 0.1 percent to $1.3374 while the euro rose by the same margin to trade at $1.1491, offering mild relief to Vietnamese apparel and footwear exporters booking revenue from European retail orders.

    Operational Risks for Importers and Retailers

    Consumer goods distributors in Vietnam operate on tight margins where small exchange fluctuations determine quarterly profitability. Sustained rates near the VND26,000 threshold force brand owners to choose between absorbing currency conversion losses or raising shelf prices across imported grocery, cosmetics and packaged foods.

    Inventory planners heading into the final quarter will track the State Bank of Vietnam’s daily fixings against commercial bank ceilings. The immediate figure to watch is whether commercial selling rates stay anchored near VND26,200 as global central banks complete their latest policy reviews.

  • Japanese Yen Drops to 156 Against Dollar Following Hawkish Federal Reserve Rate Hike

    Japanese Yen Drops to 156 Against Dollar Following Hawkish Federal Reserve Rate Hike

    The Japanese yen fell past 156 against the US dollar in Tokyo on Thursday morning after the Federal Reserve raised interest rates. Fed officials paired the hike with a hawkish outlook. The US Dollar Index climbed above 100 as Asian currencies retreated.

    This sell-off pushed the currency back toward multi-month lows against the greenback after earlier rallies had lifted it to 152 and 154. The reversal resets the cost floor for Asian supply chains. Most settle energy, raw materials and consumer electronics components in dollars.

    Widening Rate Gap Hits Asian FX

    Washington provided the catalyst. The Federal Reserve confirmed further tightening to curb stubborn inflation. Higher yields on US debt continue to draw capital away from Asian fixed income assets, penalising currencies tied to low or negative real interest rates.

    Consumer brands and retailers importing inventory across Asia face immediate margin hits. Importers of packaged food, apparel and tech hardware face higher wholesale landed costs. Export manufacturers gain a temporary translation boost, but it masks weak domestic consumer sentiment.

    Squeeze on Margins and Import Costs

    Retail operators cannot easily pass currency fluctuations to shoppers without dampening foot traffic. Department stores, specialty chains and supermarket networks across East Asia face a hard choice. They must absorb higher procurement invoices or risk volume drops by raising shelf tags.

    Japan’s Ministry of Finance and corporate treasurers lost the breathing room they had earlier in the week. The market had watched the yen strengthen toward 152. The Federal Reserve quickly extinguished bets on an early monetary pause.

    Bank of Japan Decision in Focus

    Earlier trading saw the yen swing between 152 and 154 to the dollar as desks weighed domestic inflation against global bond yields. Japanese land prices and tourism spending showed resilience. Still, imported input inflation continues to squeeze local business margins.

    Traders now look to the Bank of Japan’s upcoming policy meeting. Officials face rising pressure to consider domestic rate adjustments to arrest further currency depreciation.

  • Yen Traders Brace for Silver Week Intervention as BOJ Decision Looms

    Yen Traders Brace for Silver Week Intervention as BOJ Decision Looms

    Currency traders in Tokyo are bracing for official market intervention around the Bank of Japan’s September 18 policy meeting, eyeing the upcoming three-day holiday for sudden yen buying.

    The Japanese yen climbed 0.5 per cent to 157.99 against the US dollar on Thursday as markets began pricing in an interest rate increase larger than 25 basis points.

    Trading desks expect sharp swings during Silver Week, a long holiday weekend starting immediately after the central bank convenes. Thin liquidity during national holidays gives authorities greater traction when buying yen, echoing April when the government stepped in during an extended break for the first time since 2024.

    Holiday Liquidity and Rate Gaps

    Tokyo deployed a record $96.4 billion over the past month to prop up the currency, backed by coordination with Washington. Japanese Finance Minister Satsuki Katayama and US Treasury Secretary Scott Bessent both confirmed readiness to enter foreign exchange markets without hesitation.

    Hedge funds have nevertheless started rebuilding short bets against the yen. Elevated crude oil import bills and a persistent interest-rate gap with the United States continue to drag the currency down toward the 160 line, where SBI FX Trade president Marito Ueda warned fresh intervention becomes probable.

    Pressures Across Asian Balance Sheets

    For retailers and consumer brands across Asia, rapid currency swings disrupt cross-border supply chains and contract pricing settled in dollars. Japanese store operators face relentless cost increases on imported food and inventory, while regional exporters must recalibrate margins against an unpredictable yen.

    Attention now shifts to the US Federal Reserve’s rate decision days before the Bank of Japan meets on September 18, with traders watching whether the exchange rate tests the 160 level before holiday trading begins.

  • Asian Markets Gain as JGB Yields Slide Ahead of US Jobs Data

    Asian Markets Gain as JGB Yields Slide Ahead of US Jobs Data

    Asian stocks and government bonds climbed on Thursday as investors recalibrated interest rate expectations ahead of crucial United States labour data.

    MSCI’s broadest index of Asia-Pacific shares outside Japan rose 0.5 per cent, tracking modest overnight gains on Wall Street as benchmark sovereign borrowing costs pulled back across major economies.

    Japanese government bonds led the fixed-income recovery ahead of a Ministry of Finance auction of super-long debt. The yield on 30-year Japanese government bonds dropped 10 basis points to 4.065 per cent, retreating from near-record highs, while benchmark 10-year US Treasury yields dipped 0.99 basis point to 4.784 per cent.

    Bond Yields Ease Across the Region

    Relief across regional debt markets followed remarks from Federal Reserve Bank of New York President John Williams, who noted that elevated long-term yields reflect economic resilience while policymakers assess upcoming data. Traders using the CME Group FedWatch tool now price a roughly two-in-three probability of a 25-basis-point rate increase this month, up from 37 per cent a week earlier.

    Economic data from Tokyo offered fresh evidence of domestic momentum. Japan’s services sector expanded in August at its fastest pace in five months, supporting expectations that the Bank of Japan retains room to raise borrowing costs further.

    For retailers and consumer operators across Asia, the pause in yield expansion offers short-term relief on commercial debt and capital expenditure plans. Persistent rate differentials and elevated debt costs have weighed on cross-border expansion financing throughout the region this quarter.

    Currency and Commodity Shifts

    Currency trading remained steady, with the dollar index slipping 0.05 per cent to 99.54. The Japanese yen held its ground at 158.59 per dollar after surging 0.9 per cent in the prior session, while the euro edged up to $1.1589.

    Energy markets softened slightly despite geopolitical friction between the United States and Iran. Brent crude fell 0.44 per cent to $95.21 a barrel and US crude dropped 0.3 per cent to $90.74 a barrel, while spot gold gained 0.32 per cent to trade at $4,400.47 an ounce.

    Market attention turns next to Friday’s US nonfarm payrolls report and an upcoming address by Federal Reserve Governor Christopher Waller.

  • Japanese Retailers Lock in FX Contracts as Weak Yen Hits Profits

    Japanese Retailers Lock in FX Contracts as Weak Yen Hits Profits

    Japanese retailers are overhauling supply contracts and turning to financial derivatives as the yen hovers near 159 per dollar, driving up import costs across food and consumer goods.

    The currency has shed more than 30 per cent against the greenback over the past five years, eroding buying power for domestic store operators that rely heavily on overseas agricultural products, raw materials and finished goods.

    Supermarkets Shift Supply Terms

    Takara MC, which runs 43 supermarkets south of Tokyo, has abandoned monthly price negotiations with overseas suppliers in favour of quarterly and annual agreements. Chief executive Taku Ueno said securing terms for up to a year on imports such as US beef, Spanish olive oil and Italian tomatoes allows the chain to shield shoppers from immediate price increases on store shelves.

    Securing supply deals has grown harder as rival buyers from China and Thailand consistently outbid Japanese grocers for commodity shipments.

    Bankers report that small and mid-sized store operators, which previously absorbed modest currency swings, are now turning to futures, forwards and options contracts to limit their balance sheet exposure.

    Corporate Hedging Stretches Further

    Nitori Holdings, the country’s largest furniture retail chain, estimates that every 1 yen drop against the US dollar reduces its operating profit by roughly 2 billion yen ($12.5 million). While the company has avoided direct hedges to date, it is reviewing forward contracts if currency weakness continues.

    Brokers in Tokyo say hedging volume is expanding well beyond traditional tenors. Daiwa Securities noted that client requests to lock in exchange rates have stretched from the usual few months out to as long as five to 10 years, while Bank of America expanded its Tokyo foreign exchange sales team over the past two years to handle the surge in corporate demand.

    For retailers across East Asia, Japan’s currency predicament shows how sustained foreign exchange weakness can upend long-standing retail pricing models. Competitors elsewhere in the region, operating with firmer currencies, continue to snap up global agricultural allocations that once went routinely to Tokyo buyers.

    Market participants at JP Morgan project the dollar-yen rate will persist in the 155 to 165 corridor, keeping the pressure firmly on Japan’s store operators as contract renewals approach in the coming quarter.

  • Vietnamese Dong Strengthens as Dollar Drops to VND26,330 at Vietcombank

    Vietnamese Dong Strengthens as Dollar Drops to VND26,330 at Vietcombank

    Vietcombank lowered its selling rate for the US dollar by 0.11 percent to VND26,330 on Tuesday morning, reflecting broad softness across international foreign exchange desks.

    The drop in official banking channels contrasted with Vietnam’s parallel market, where the greenback climbed 0.19 percent to VND25,970.

    Divergence in local currency trade

    Commercial lenders adjusted rates as global demand for the dollar faltered. Currency dealers operating in the unofficial market logged modest buying interest, keeping the gap between bank counters and private money changers unusually narrow.

    Vietnamese importers and consumer brands track these daily currency fluctuations closely to price incoming shipments of electronics, packaged goods, and retail inventory.

    Global pressures and trade sanctions

    In international currency trade, the dollar struggled to retain ground against major peers. The euro traded slightly higher at $1.1668, near a three-month high, while sterling gained 0.1 percent to $1.3639, holding near a six-month peak.

    Market participants weighed fresh policy actions from Washington, where US Treasury Secretary Scott Bessent announced an expansion of sanctions against Iran on Monday. Bessent warned foreign entities to sever commercial ties or risk expulsion from dollar clearing networks.

    Ray Attrill, head of FX strategy at National Australia Bank, noted in a podcast that the measures could trigger a modest reversal of dollar weakness seen late last week.

    Traders across Asian financial hubs are watching whether Treasury yield management and the expanded sanctions framework will halt the dollar’s downward drift before the next fixing.

  • Dollar struggles in Asia after lift from US retail sales

    Dollar struggles in Asia after lift from US retail sales

    The dollar was steady on Friday after China’s central bank appeared to have stopped guiding the yuan lower for now, easing concerns that a weaker Chinese currency could derail plans by the US Federal Reserve to raise interest rates.

    The dollar traded at 124.40 yen, flat from late US levels and above this week’s low of 124.21 yen. For the week, it was up about 0.1 per cent.

    Volume in Tokyo was relatively thin, with many businesses winding down for the mid-August Obon holiday. Although there are no public holidays, many people take summer vacations around this time, and some offices close.

    “Company people have gone on their breaks and left their orders with banks,” said Kaneo Ogino, director at foreign exchange research firm Global-info Co in Tokyo.

    Some commercial accounts would sell dollars above 125.50, he added.

    The euro fetched $1.1143, down slightly from late US levels. Still, it was up 1.6 per cent on the week, as the dollar has been hit by speculation that the US might not want a stronger dollar either if China pushes down the yuan.

    The euro got a lift this week as investors unwound euro-funded carry trades in the yuan and other emerging market currencies, which were hit hard by the devaluation.

    Emerging Asian currencies continued to fall on Friday, on track for steep weekly losses, with the Malaysian ringgit skidding to a fresh pre-peg 17-year low.

    On Friday, the People’s Bank of China set the yuan midpoint at 6.3990 yuan to the dollar, slightly stronger than Thursday’s levels.

    The central bank said on Thursday there was no reason for the yuan to fall further given the country’s strong economic fundamentals.

    Beijing’s moves some eased concerns that a cheaper yuan could trigger a “currency war”, or a competition among the world’s biggest economies to cheapen their own currencies to seek a competitive edge.

    US interest rate futures prices edged down and US bond yields bounced back as investors priced in an increased likelihood of a Fed rate hike in September. Solid US retail sales data also supported the case for an early rate hike.

    The dollar index, which tracks a basket of six major currencies, stood at 96.420 , off a one-month low of 95.926 hit on Tuesday.

    Still, market players are not sure how much more the dollar can gain, assuming the yuan could fall further in the face of a slowdown in the Chinese economy.

    “The latest concerns triggered by the sudden policy action may be subsiding a tad. But there is no change in the fact that the Chinese economy is slowing,” said Masafumi Yamamoto, senior strategist at Monex Securities.

    “I think the yuan has become overvalued as other countries tried to cheapen their currencies and it will keep falling, playing catch-up,” he added.

    While most major currencies saw limited moves on Friday, the New Zealand dollar fell after domestic retail sales had the slowest increase in two years, cementing expectations the Reserve Bank of New Zealand will cut rates.

    The New Zealand dollar traded down 0.5 per cent at $0.6535 , down about 1.3 per cent for the week.

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