All posts tagged: currencies

Latam Currencies Gain as Markets Balance Iran Escalation and Ceasefire Chances

Latam Currencies Gain as Markets Balance Iran Escalation and Ceasefire Chances

Published by Sam Flores

April 6 (Reuters) – Most Latin American currencies advanced on Monday, while ⁠stocks ⁠were mixed after reports of progress on ⁠a ceasefire between the U.S. and Iran helped revive risk appetite worldwide as traders returned after a ​long weekend break.  A framework to end hostilities has been put together by Pakistan and exchanged with Iran and the U.S. overnight, a source aware of ‌the proposals told Reuters.  However, some of the ‌risk appetite tapered off after Iran’s official IRNA news agency said Iran conveyed its response to the proposal and is rejecting a ceasefire ⁠and emphasizing the ⁠necessity of a permanent end to the war.  Trump is also set to speak about the ​ceasefire proposal at a press conference at 1 p.m. ET (1800 GMT), a White House official told Reuters. He has said the Tuesday deadline he has set for Iran to make a deal is final.  “Geopolitical tensions around Iran and the Strait of Hormuz are driving energy supply disruptions, market volatility and urgent ​diplomatic efforts, with ceasefire talks offering limited near-term clarity,” said …

ECB keeps rates on hold, flags high uncertainty – POLITICO

ECB keeps rates on hold, flags high uncertainty – POLITICO

Published by Sam Flores

Since the ECB last met in December, global risks have intensified. U.S. President Donald Trump threatened new tariffs — or worse — to secure control over Greenland and launched his most aggressive attack yet of the U.S. Federal Reserve, triggering a broad sell-off in the dollar. That pushed the euro briefly to its highest level since 2021, raising concerns among some ECB policymakers that currency strength could drag inflation further below the ECB’s 2 percent target. While data released early this week showed inflation sinking to 1.7 percent in January, the most recent ECB staff forecasts see it returning to target by 2028. A continued appreciation of the euro, however, risks pushing inflation below target more durably and may thus require ECB action, French central bank chief François Villeroy de Galhau has warned. The euro has eased from its $1.20 peak to around $1.1780 as of Thursday, tempering immediate concerns. But analysts said exchange-rate volatility is likely to remain elevated, with investors watching ECB President Christine Lagarde’s 2:45 p.m. CET press conference for clues on …

Britain’s pound is beating every other major currency this year

Britain’s pound is beating every other major currency this year

Published by Sam Flores

London CNN  —  The British pound crashed to a record low last fall as investors rebelled against budget plans by former Prime Minister Liz Truss. Now, it’s enjoying a comeback. Sterling hit its highest level against the US dollar in 10 months on Tuesday, topping $1.25 for the first time since June 2022. The pound, which has advanced about 3.3% versus the greenback since the start of 2023, is the best-performing currency among developed economies this year. The UK currency has been boosted by indications the country’s economy is holding up better than expected. Activity is now thought to have expanded 0.1% in the final three months of last year, up from a previous estimate of no growth at all. Gross domestic product growth in January has been estimated at 0.3% after dropping 0.5% in December. This resilience is bolstering expectations the Bank of England will maintain aggressive interest rate hikes despite concerns about the health of the global banking sector. Rising rates can boost the domestic currency because they help attract foreign investors searching …