What I saw on Wall Street

dollarYabbycasino150freespinsThe strength of Asian currencies puts full pressure on Asian currencies.Yabbycasino150freespinsCentral banks all over the world spoke out intensively. Rhee Changyong, governor of the Bank of Korea, said today that the won was too weak and that the Bank of Korea had the tools to take action against exchange rate fluctuations. The South Korean won rebounded against the US dollar, expanding to 0 per cent in the day.Yabbycasino150freespins.7%.

On Wednesday, April 17th, under the "offensive" of a strong dollar, the "currency defense war" of Asian countries continued.

Overnight, Federal Reserve Chairman Colin Powell cut interest rates again, saying that recent data show that inflation is not making enough progress and that it may be appropriate to let high interest rates play a role in a longer period of time. The dollar index rose rapidly, rising to 106.Yabbycasino150freespinsAbove .50, it broke its highest level since November 1, 2023 for two consecutive days, setting a five-month high for three days in a row.

Under the "heavy pressure" of the US dollar, whether it is the currencies of major Asian economies such as the Japanese yen, the Indian rupee and the South Korean won, or the small currencies of ASEAN countries such as the Indonesian rupiah, the Vietnamese rupiah and the Philippine peso, are under a new round of selling pressure, and central banks are moving quickly.

On the sidelines of the G20 spring meeting, South Korean Finance Minister Choi Sang-mu and Japanese Finance Minister Suzuki Shunichi were worried about the weakening of the won and the yen, according to a statement from the South Korean Ministry of Finance today. The two officials mentioned that they might take action against volatile exchange rate fluctuations.

In terms of the renminbi, data from the China Foreign Exchange Trading Center showed that the central parity rate of the renminbi against the dollar was 7.1025, an increase of three points; the midpoint of the previous session was 7.1028, the official closing price of the previous day was 7.2396, and the day and night close of 7.2380. The offshore RMB jumped short-term against the dollar and is now trading at 7.26.

The Philippine peso fell below 57

The Philippine peso fell below the key level of 57 pesos for the first time since late 2022 today, adding to pressure on the country's central bank to intervene in the money market. As of press time, the peso fell 0.5% to 57.29 to the dollar, the lowest level since November 2022.

Eli Remolona, governor of the Bank of the Philippines, said that unless the exchange rate fluctuates very sharply, it tends to allow the exchange rate to adjust. Earlier this week, the Eli Remolona said it was satisfied with the current level of the peso and that the central bank had barely intervened in the foreign exchange market recently.

The South Korean won rebounded against the dollar

After the central bank of Korea stepped up its verbal intervention, the won rebounded against the dollar, expanding its intraday gain to 0.7 per cent. Yesterday, the won fell below 1400 against the dollar for the first time since November 7, 2022.

The continued depreciation of the South Korean won has prompted South Korean authorities to warn against exchange rate fluctuations. Rhee Changyong, governor of the Bank of Korea, said today that the recent weakness of the South Korean won has slightly gone too far and that the Bank of Korea has the tools to take action against exchange rate fluctuations.

Rhee Changyong said in an interview with the media that the central bank is ready to take stabilization measures and has sufficient resources to do so.

The Japanese yen loses the 154 mark in a row

The sharp rise in the dollar comes as the yen continues to hit its lowest level since 1990, with the dollar against the yen approaching 154.80 after Powell's speech, setting a record high for the fourth consecutive day. As of press time, the dollar was trading at 154.69 against the yen, down 9 per cent from the start of the year.

JPMorgan Chase and Bank of America both point out that the yen's fall to 160 is close at hand. Julia Wang, an analyst at JPMorgan Chase, said he was closely watching the pace of the yen's decline, and that if the yen plummeted too fast and disorderly, the possibility of intervention would increase.

Without intervention, the yen could fall to 160.20, where it was in April 1990, said Daisaku Ueno, foreign exchange strategist at Mitsubishi UFJ Morgan Stanley Securities. Once the yen breaks through the 155 mark, the authorities may intervene.

Indian rupee hit an all-time low

Today, the Indian rupee continued to decline, as of press time, the Indian rupee closed at 83.69 against the dollar, still at an all-time low, falling below 83.50 in November last year.

The weakness of the rupee has prompted speculation among traders that the Reserve Bank of India may use its foreign exchange reserves and intervene in the market to contain exchange rate volatility. Kunal Sodhani, deputy governor of the Bank of Korea, said that given that India's foreign exchange reserves are at an all-time high, the Reserve Bank of India may use this ammunition to contain any form of excessive volatility.

The Indonesian rupiah fell to a four-year low

The rupiah, one of the steepest declines in Asian currencies, tumbled more than 2 per cent against the dollar to a four-year low yesterday, prompting the central bank of Indonesia to intervene to stabilize the rupiah. The Bank of Indonesia said it would intervene in the spot market and the domestic non-deliverable forward (NDF) market to maintain the stability of the rupiah in the market.

Today, the rupiah rose slightly, rising slightly to 16274 as of press time.

Thai baht rebounded slightly

The Thai authorities are doing their best to support the Thai baht, with the dollar falling slightly to 36.66 as of press time. Since the beginning of the year, the Thai baht has depreciated by nearly 7% against the dollar. In the face of the dilemma of the continued weakness of the Thai baht, the Bank of Thailand tried to push up the Thai baht through verbal intervention, and the Bank of Thailand recently said it would continue to closely monitor fluctuations in the foreign exchange market.

The dong falls to a record low

Yesterday, the dollar hit a record high of 25295 against the dong during the day. As of press time, the exchange rate of the dong was 25290, approaching an all-time high.

Media analysis pointed out that stabilizing the market has become an urgent problem in Vietnam. In recent months, Vietnamese Prime Minister Fan Mingzheng and members of the National Financial and Monetary Policy Advisory Committee and other senior officials have been urging the search for a solution.