{"id":1661174,"date":"2022-09-27T21:52:16","date_gmt":"2022-09-28T01:52:16","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1661174"},"modified":"2022-09-27T21:52:47","modified_gmt":"2022-09-28T01:52:47","slug":"sterling-swallows-bitter-pill-dollar-advances-on-hawkish-fed-speak","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/sterling-swallows-bitter-pill-dollar-advances-on-hawkish-fed-speak\/","title":{"rendered":"Sterling swallows bitter pill, dollar advances on hawkish Fed speak"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">20<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fsterling-swallows-bitter-pill-dollar-advances-on-hawkish-fed-speak%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1661174&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><p>By Rae Wee<\/p>\n<p>SINGAPORE (Reuters) \u2013     The pound languished near a record low on Wednesday on lingering concerns over Britain\u2019s radical tax cuts to spur growth, while the dollar edged up after Treasury yields surged overnight.<\/p>\n<div id=\"div-gpt-ad-1663871513696-art-1\">\n<\/div>\n<p>Sterling fell 0.4% to $1.0693 in early Asia, following a slight 0.4% gain in the previous session, still nursing deep losses after its slide to an all-time low of $1.0327 at the start of the week.<\/p>\n<p>Bank of England Chief Economist Huw Pill said overnight that the central bank is likely to deliver a \u201csignificant policy response\u201d to finance minister Kwasi Kwarteng\u2019s huge tax cuts.<\/p>\n<p>But he added that the central bank wants to wait until its next scheduled meeting in November before making its move, quashing market speculations of a potential inter-meeting interest rate hike.<\/p>\n<p>\u201cAny comments on the Bank of England\u2019s policy path from here as well as the UK fiscal plan will definitely be closely watched, but for the near-term I think sterling\u2019s going to remain pretty weak from here,\u201d said Carol Kong, senior associate for international economics and currency strategy at the Commonwealth Bank of Australia.<\/p>\n<p>\u201cIt\u2019s basically a crisis of confidence. It\u2019ll be up to the UK government to resolve this \u2026 rather than Bank of England.\u201d<\/p>\n<p>Meanwhile, the dollar stood near a two-decade high against a basket of currencies, as the U.S. dollar index gained 0.18% to 114.35, close to its top of 114.58 hit on Monday.<\/p>\n<p>Benchmark U.S. 10-year Treasury yields and the 30-year yields rose to new milestones overnight, after Federal Reserve officials reiterated the central bank\u2019s hawkish stance.<\/p>\n<p>\u201cThe dollar strength has really exceeded a lot of forecasters\u2019 expectations for this year, and is likely to remain higher for longer,\u201d said Kong.<\/p>\n<p>Euro fell 0.2% to $0.95735, while the Aussie was down 0.1% to $0.6428.<\/p>\n<p>The kiwi fell to a new 2-1\/2-year low at $0.56165.<\/p>\n<p>In the latest flare-up in the euro zone\u2019s gas crisis and an escalation of geopolitical tension, Europe was on Tuesday investigating what Germany, Denmark and Sweden said were attacks which had caused major leaks into the Baltic Sea from two Russian gas pipelines at the centre of an energy standoff.<\/p>\n<p>In Asia, the Japanese yen stood uncomfortably close to a 24-year trough at 144.79 per dollar following the surge in U.S. Treasury yields overnight, as the dollar-yen pair tends to track the long-term yield spread between U.S. and Japanese government bonds. It has been little helped by an intervention from Japan to prop up the fragile currency last week.<\/p>\n<p>\u201cWhat would really change the value of the yen will be if the BOJ gives up or resets their yield curve control policy,\u201d said Pablo Calderini, chief investment officer at hedge fund Graham Capital.<\/p>\n<p>\u201cAs long as you keep a rate differential of 4%, it will be really hard to see a significant appreciation of the yen.\u201d<\/p>\n<p> (Reporting by Rae Wee; editing by Richard Pullin)<\/p>\n<p><a href=\"https:\/\/www.oann.com\/uncategorized\/sterling-swallows-bitter-pill\/attachment\/file-photo-illustration-shows-british-pound-banknotes-5\/\"><img decoding=\"async\" src=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-content\/uploads\/2022\/09\/tagreuters.com2022binary_LYNXMPEI8R01K-BASEIMAGE.jpg\" alt=\"tagreuters.com2022binary_LYNXMPEI8R01K-BASEIMAGE\" \/><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>By Rae Wee SINGAPORE (Reuters) \u2013 The pound languished near a record low on Wednesday on lingering concerns over Britain\u2019s radical tax cuts to spur growth, while the dollar edged<\/p>\n","protected":false},"author":66,"featured_media":1889278,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","fifu_image_alt":"","footnotes":""},"categories":[],"tags":[],"class_list":["post-1661174","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry"],"fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","fifu_finder_url":"https:\/\/www.oann.com\/business\/sterling-swallows-bitter-pill\/?utm_source=rss&utm_medium=rss&utm_campaign=sterling-swallows-bitter-pill","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1661174","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/66"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=1661174"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1661174\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/1889278"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=1661174"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=1661174"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=1661174"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}