Another dramatic day in global currency market!
Here are the highlights so far developed since last Friday:
The dollar was on pace to set a new record high, for the second month in a row, while The yen showed renewed weakness, despite last week’s intervention
The British pound tumbled to a record low below $1.035, before clawing back much of those losses.
Tweet on global currency market turmoil
A Turbulent Day in Global Currency Markets!
-The dollar was on pace to set a new record high!
-The yen showed renewed weakness, despite last intervention
-The British pound tumbled to a record low below $1.035
-The Turkish lira also traded at its weakest level,18.45 against $ pic.twitter.com/NQjq3fP94b
— The_Journalbiz (@the_journalbiz) September 26, 2022
The Turkish lira also traded at its weakest-ever levels, retreating 0.2% to 18.45 against the dollar, following last week’s contrarian interest-rate cut.
China made it more expensive to bet against the yuan, but the yuan nevertheless fell, trading beyond 7.16 per dollar offshore.
The dollar was on pace to set a new record high, as measured by the dow jones Index, which was recently up 0.47% to 104.60.
The yen showed renewed weakness, despite last week’s intervention, trading at about 144.1 per dollar.
The central bank defended bond-buying at a time when the government was seeking to bolster the currency.
After tumbling Friday,
the pound extended its drop Monday, briefly hitting a record low. U.K. Chancellor of the Exchequer Kwasi Kwarteng said over the weekend that more tax cuts could be on the way, further unnerving investors.