Interbank Market News Scan: U.S. and Asian foreign exchange rates as of 10:38 AST

Currency Pair7 March 20228 March 20229 March 202210 March 202211 March 2022
USD/CNY6.316646.31891   
USD/JPY114.786115.14   
USD/INR76.33576.8465   
USD/PKR177.85177.986   
USD/BDT84.853284.6922   
USD/SAR3.745243.74524   
USD/SGD1.359681.36246   
USD/MYR4.17554.17553   
USD/VND22,833.922845.3   
Source: OANDA

Interbank Market News Scan: Bank of England throws shade on Russian currency listing.

Interbank, Russia, ruble. The Bank of England said on Thursday it would cease publishing the rouble’s exchange rate against sterling and the U.S. dollar with immediate effect after the Russian currency slumped to a record low. See article here. Source: Reuters.

Interbank, Pakistan, rupee. “The Pakistani Rupee (PKR) continued to struggle against the US Dollar (USD) and posted losses in the interbank market today. It lost 21 paisas against the greenback after hitting an intra-day low of Rs. 177.7 against the USD during today’s open market session.” See article here.

EUR/USD=1.1107

GBP/USD=1.33369

USD/CAD=1.26908

USD/MXN=20.6689

USD/NGN=415.562

USD/GHS=6.78353

USD/INR=75.6115

USD/JPY=115.293

USD/CNY=6.3139

USD/BTC=0.00002

Source: OANDA

Dollar Index: 97.79

Source: MarketWatch

Interbank Market News Scan: Higher dollar demand sends Pakistan rupee downward.

Interbank, Russia, commodities. “Currencies of commodity-exporting economies rallied on Wednesday as oil and metal prices soared in the aftermath of stinging sanctions on Russia over its invasion of Ukraine, while the rouble widened its divergence between onshore and offshore trading.” See article here. Source: Reuters.

Interbank, Russia, interest rates. “Bankers and investors are nervously watching Russia’s interbank interest rates for a spike that would foreshadow the start of a banking crisis. While rates have risen in recent days, they are not yet at the levels that would ring alarm bells, Capital Economics’ senior analyst Jason Turvey said in a note on March 2.” See article here. Source: BNE Intellinews.

Interbank, Pakistan, rupee, foreign exchange. “The rupee gave up the previous session’s gain on Wednesday amid higher dollar demand from importers and fears of worsening current account deficit, dealers said.” See article here.

Foreign exchange rates as of 11:20 pm AST

EUR/USD=1.1107

GBP/USD=1.33797

USD/CAD=1.26912

USD/MXN=20.5265

USD/JPY=114.937

USD/CNY=6.31083

USD/INR=75.4949

USD/NGN=415.524

Source: OANDA

Dollar Index=97.53

Source: MarketWatch

Interbank Market News Scan: Russian central bank ability to sell roubles Monday implies an unknown market participant; claims internal substitute for SWIFT.

Interbank, Russian, ruble, central bank. “Russia’s central bank more than doubled its key policy rate on Monday and introduced some capital controls as the country faced deepening economic isolation, but its governor said sanctions had stopped it selling foreign currency to prop up the rouble.” See article here. Source: US News and World Report.

Interbank, Russia, rouble. “Russia’s rouble tumbled to trade above 100 a dollar on Monday, as investors fretted about the fallout from biting Western sanctions against the country, but a slew of central bank measures including a large rate hike helped it off record lows.” See article here. Source: Nasdaq.

Interbank, Russia, oil markets. “The heavy new round of sanctions on Russia by the U.S. and its allies are likely to push oil prices — and inflation — even higher.” See article here. Source: CNBC.

Interbank, banks, liquidity. “Banks are an essential part of the financial eco-system. Their collapse can have a cascading effect on the rest of the economy.” See article here. Source: Capital.com.

Interbank, China, overnight rate. “The overnight Shanghai Interbank Offered Rate (Shibor), which measures the borrowing cost of China’s interbank market, edged up 0.3 basis points to 2.234 percent Monday.” See article here. Source: China.org.cn.

Interbank, Pakistan. “The Interbank US dollar (USD) against Pakistani rupee (PKR) Closing exchange rate is Rs175.25 at 8:30 am PST on March 1st, 2022.” See article here. Source: BOL News.

Foreign exchange rates as of 8:54 am AST

EUR/USD=1.11917

GBP/USD=1.33881

USD/CAD=1.27352

USD/MXN=20.5102

USD/JPY=115.336

USD/NGN=415.632

USD/INR=75.3584

USD/CNY=6.3095

Source: OANDA

Dollar Index=97.01

Source: MarketWatch

For consultation on how this political or legal event impacts your foreign exchange trade, request an appointment at altondrew@gmail.com.

Call to action: To support this page, please visit our advertisers. You may also visit the sidebar and make a donation via PayPal.

Disclaimer: The above is provided for informational purposes and should not be construed as financial or legal advice or as creating an agreement to provide financial or legal advice.

Interbank Market News Scan: Remittances to Pakistan decline; Chinese bonds offering safe haven for investors concerned about volatility …

Interbank, Ghana, cedi. “Uncertainties surrounding the country’s ongoing access to forex are causing speculations on the FX market which has effectively driven the spread between cedi depreciation on the interbank and the retail markets.” See article here. Source: GhanaWeb

Interbank, China, yuan. “Holdings of Chinese government bonds by offshore investors rose in January despite a steep drop in yield premiums over U.S. government debt, as investors continued to seek safe havens from inflation and rising rates afflicting other markets.” See article here. Source: Nasdaq

Interbank, Pakistan, rupee. “Rupee slipped 0.13 percent (-23 paisa) against the US dollar last week despite recent inflows from the International Monetary Fund.” See article here. Source: Daily Times

Interbank, China, bonds. “China’s interbank treasury bond index in net price opened at 996.19 points Monday, lower than the previous close of 997.24 points, according to the China Foreign Exchange Trade System.” See article here. Source: China.org.cn

Foreign exchange rates and dollar index as of 5:20 am EDT

EUR/USD=1.13456

GBP/USD=1.35484

USD/MXN=20.5234

USD/GTQ=7.51781

USD/NGN=416.51

USD/GHS=6.32313

USD/VND=22,686.8

USD/JPY=115.451

USD/KRW=1,199.56

USD/INR=75.412

USD/BTC=0.00002

USD/ETH=0.00034

Source: OANDA

Dollar Index=96.29

Source: MarketWatch

Interbank Market News Scan: U.S. inflation rate at 7.5%

Interbank, United States, Inflation. “In January, the Consumer Price Index for All Urban Consumers rose 0.6 percent, seasonally adjusted, and rose 7.5 percent over the last 12 months, not seasonally adjusted. The index for all items less food and energy increased 0.6 percent in January (SA); up 6.0 percent over the year (NSA).” See report here. Source: U.S. Bureau of Labor Statistics

Interbank, Pakistan. “The buying rate of 1 SAR to PKR was Rs46.710 and selling rate of 1 SAR to PKR was Rs46.790 in the interbank market on Feb 10, 2022.” See article here. Source: BOL News

Interbank, China. “The central parity rate of the Chinese currency renminbi, or the yuan, weakened 84 pips to 6.3653 against the U.S. dollar Wednesday, according to the China Foreign Exchange Trade System.” See article here. Source: China.org

Interbank, Taiwan. “The central bank has asked exporters to sell their US dollar holdings at different times to avoid causing a sudden appreciation of the NT dollar.” See article here. Source: Taipei Times

Interbank, Japan. “Global shares rose Thursday as investors tried to gauge U.S. inflation, tensions between Russia and Ukraine and the impact of the pandemic.” See article here. Source: News4Jax

Foreign exchange rates of interest as of 8:16 am EDT

EUR/USD=1.1427

GBP/USD=1.3553

USD/MXN=20.5344

USD/GTQ=7.52045

USD/NGN=415.844

USD/GHS=6.36299

USD/VND=22,694.9

USD/JPY=115.45

USD/INR=74.6951

USD/BTC=0.00002

USD/ETH=0.00032

Source: OANDA

Dollar Index (DXY)=95.51

Source: MarketWatch

Interbank Market News Scan: Pakistan rupee losing against the dollar; Reserve Bank of Australia under pressure to hike rates; Bitcoin strengthens.

Interbank, State Bank of Pakistan. “The rupee continued to register marginal losses against the US dollar on Wednesday amid a slight uptick in greenback demand from importers.” See article here. Source: GeoNews

Interbank, Reserve Bank of Australia. “Bonds extended their losses as financial markets ramped up the pressure on the Reserve Bank of Australia to raise the cash rate as soon as May, in response to persistent inflationary pressures challenging its dovish stance.” See article here. Source: Financial Review

Interbank, Nepal Rastra Bank. “Foreign reserves have depleted due to high imports in the country. According to the data released by Nepal Rastra Bank (NRB) the current foreign reserves can support the import of goods and services for six and half months only.” See article here. Source: Khabarhub

Interbank, Bangladesh. “The Bangladesh Bank has asked foreign-currency dealer banks to submit their daily exchange position statements using a new rationalised input template (RTI) to ensure better monitoring. In a circular on Monday, the central bank said it had decided to replace the existing RTI for further convenience of supervision.” See article here. Source: The Business Standard

Foreign exchange, India, travel. “With countries around the globe opening doors to vaccinated travelers, foreign travel bookings are witnessing a massive surge in India. The rise in globetrotting among Indians has led to a considerable increase in forex transactions as well.” See article here. Source: IndianWeb2

Foreign exchange, South Africa, rand. “A generally weakening rand and mounting inflationary pressures have meant the South African Reserve Bank (SARB) has once again raised interest rates, to the distinct detriment of the weakest members of our society.” — Brian Benfield. See article here. Source: BizNews 

Foreign exchange rates of interest as of 9:18 am EDT

EUR/USD=1.1418

GBP/USD=1.3539

USD/MXN=20.6288

USD/GTQ=7.5230

USD/NGN=415.644

USD/GHS=6.3541

USD/VND=22,706.1

USD/JPY=115.431

USD/INR=74.6417

USD/BTC=0.00002

USD/ETH=0.00032

Source: OANDA

Dollar Index=95.47

Source: MarketWatch

Interbank Market News Scan: Indian rupee strengthens against weakening dollar; US adds 467,000 jobs …

Interbank, Indian rupee. “The rupee surged 18 paise to close at 74.70 (provisional) against the U.S. dollar on Friday tracking the weakness of the American currency in the overseas market….” See article here. Source: The Hindu

Interbank, Pakistan, remittances. “Home remittances are a major source of income for families of expatriate Pakistanis and contribute significantly in country’s economic activities. The State Bank of Pakistan together with the Government of Pakistan has introduced various policy initiatives, from time to time, to increase the flow of home remittances through formal channels …” See article here. Source: MarketScreener

Interbank, Pakistan, remittances. “In order to improve foreign exchange liquidity in the inter-bank market, the State Bank of Pakistan (SBP) and the government are now incentivising Exchange Companies (EC) to surrender 100% of home remittances against Re1 for each U.S. dollar.” See article here. Source: Business Recorder

Interbank, US Department of Labor, unemployment. “Total nonfarm payroll employment rose by 467,000 in January, and the unemployment rate was little changed at 4.0 percent. Employment growth continued in leisure and hospitality, in professional and business services, in retail trade, and in transportation and warehousing. Average hourly earnings increased 23 cents to $31.63.” See report here. Source: U.S. Bureau of Labor Statistics

Foreign exchange rates of interest as of 9:00 am EDT

EUR/USD=1.1350

GBP/USD=1.3577

USD/MXN=20.5930

USD/GTQ=7.5110

USD/NGN=415.614

USD/GHS=6.3273

USD/VND=22,646.7

USD/JPY=114.72

USD/INR=74.7056

USD/BTC=0.00003

USD/ETH=0.00038

Source: OANDA

Dollar Index: 95.64 Source: MarketWatch

Interbank market news scan: BIS releases paper on virtual banking; forex rates of interest to Atlanta; Ethereum strengthens slightly

Bank of International Settlements. Today, the Bank of International Settlements released a paper on virtual banking providing insights on the use of information capital as a substitute for tangible capital. The paper argues that information capital, comprised of an enterprise’s or individual’s digital data footprint, can be used as collateral for obtaining credit, thus increasing access to credit by small and medium businesses and low income individuals.

While the paper uses the Hong Kong market as a case study, I believe that if US-based banks and fintechs embarked on the same initiative, the following legal issues may arise. Can information capital be used as collateral when borrowing for the purpose of purchasing foreign currencies? Does the use of information capital raise discrimination issues where biases are embeded in the artificial intelligence programming? Are existing laws sufficient for protecting enterprise or individual data privacy where such data is encompassed in information capital used as collateral?

The link to the BIS paper can be found here.

Federal Reserve Bank of New York. Yesterday after the Board of Governors of the Federal Reserve announced that it would hold its interbank rate for overnight lending between 0 and .25%, the Federal Reserve Bank of New York announced that the reserve bank’s Open Market Trading Desk would increase its System Open Market Account holding of Treasury securities by at least $20 billion per month and its agency mortgage-backed securities by at least $10 billion per month. This reduced level of purchasing (down from a combined high of $120 billion per month at the beginning of the pandemic) will commence on 14 February 2022.

The link to the New York Fed’s announcement can be found here.

Interbank Market, Pakistan. The rupee held steady against the dollar at Rs176.98 but has been depreciating in value since 1 July 2021. See link to article here.

Foreign exchange rates as of 10:00 am EDT

EUR/USD=1.1282

GBP/USD=1.3500

USD/MXN=20.6258

USD/GTQ=7.5060

USD/NGN=414.7010

USD/GHS=6.1790

USD/VND=22,632.2000

USD/JPY=114.1900

USD/INR=74.8041

USD/BTC=0.00003

USD/ETH=0.00039

Source: OANDA

Interbank Market News Scan at 2:45 pm GMT

Links you should follow …

Interbank, interdealer. Interbank trading activity accounted for more than 80% of the US$3.1trn in interest-rate derivatives that left the UK for the US and the European Union in the wake of Brexit, according to IFR calculations using IHS Markit data. Interbank trading drives post-Brexit swap migration | IFR (ifre.com)

Interbank, interdealer. Paul Houston, Global Head of FX Products, CME Group, recently caught up with Traders Magazine to discuss the drivers causing change in the FX derivatives market, what CME Group has been doing to alleviate the pain points from these changes, and the exchange’s future plans.  FX Futures and Options Innovation in Focus – Traders Magazine

Interbank, interdealer. US exchange group ICE has invested in FinTech and municipal bond network BondLink to develop infrastructure servicing in the $4 trillion market. ICE invests in US municipal bond network BondLink (thetradenews.com)

Interbank, China. The following are the central parity rates of the Chinese currency renminbi, or the yuan, against 24 major currencies announced on Monday by the China Foreign Exchange Trade System. Market exchange rates in China — May 24 – China.org.cn Interbank, Pakistan. The Pakistani rupee depreciated 34 paisas against the United States (US) dollar in the interbank currency market on Monday. Rupee weakens against US dollar (arynews.tv)

Foreign exchange rates of interest …

Currency PairsRates as of 2:45 pm GMT 24 May 2021Rates as of 1:43 pm GMT 21 May 2021
GHS/EUR0.14150.1417
GMD/EUR0.01590.0159
NGN/EUR0.00200.0020
SLL/EUR0.00010.0001
KES/EUR0.00770.0075
RWF/EUR0.00080.0008
ZAR/EUR0.05870.0584
MZN/EUR0.01360.0136
XCD/EUR0.30400.3035
Source: OANDA