The dollar jumped to its highest level in more than a week once morest the Japanese yen today, Wednesday, supported by an increase in the yield on Treasury bonds, amid hopes for a recovery in demand in China with the easing of anti-Covid-19 restrictions. The yen also came under pressure amid more indications from the Bank of Japan that the sudden change in monetary policy last week was not the beginning of a stimulus cut. The dollar rose 0.5 percent to 134.17 yen in Asian transactions, and earlier in the session touched 134.40 yen for the first time since December 20. The Japanese yen also fell once morest other currencies, as the euro rose 0.51 percent to 142.70 yen, its highest level in a week as well. The Australian dollar jumped 0.62 percent to 90.40 yen, its highest level in a week. The dollar index, which measures the performance of the US currency once morest a basket of six major currencies, including the yen and the euro, rose 0.1 percent, its highest level in a week, to 104.31, continuing its rise following falling to its lowest level since mid-June at 103.44 on December 14. The euro settled at $1.0636 and has been moving in both directions over the past two weeks, below the six-month high of $1.0737 reached on December 15. The British pound fell 0.15% to $1.2013, as it hovered above this month’s lows of $1.1993 hit on December 22. The Australian dollar rose 0.07% to $0.6738, heading towards the higher end of its trading range reached on December 16.
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US dollar
After the US Central Bank raised interest rates, the dollar is making gains and gold is declining
written by Alexandra Hartman Editor-in-Chief
After the US Federal Reserve raised interest rates, the dollar made gains, and gold prices fell, while oil prices maintained their stability.
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The US dollar is making big gains today
The US dollar made significant gains today, Thursday, following the US Federal Reserve raised interest rates by half a percentage point, in line with most expectations, while gold prices fell, and oil prices stabilized in early trading.
Fed policy makers expected more hikes, and keeping interest rates high, for longer than previously hoped.
US Central Bank Chairman Jerome Powell referred to the FOMC’s determination to “calm inflation despite the risks of recession,” expecting the interest rate to exceed 5%.
Gold prices fell
In parallel, gold prices fell by nearly 1%, today, Thursday, following a statement by Powell, in which he said that “next year will witness more interest rate hikes.”
Spot gold fell 0.9% to $1,791.71 an ounce by 07:24 GMT, further retreating from a more than 5-month peak recently recorded. US gold futures fell 0.9%, recording $1,802.10.
For his part, Christopher Wong, an analyst at VOCBFX, said, “The US central bank’s adherence to the tendency to tighten monetary policy is putting pressure on the metal, and that gold price expectations depend on the amount of tightening that central banks – especially the US central bank – intend to do.” from now on”.
And at the beginning of this month, the World Gold Council announced in its monthly report that “Central banks maintained their appetite for the yellow metalAnd his possession was lifted last October.
Gold is known as a hedge once morest inflation, but high interest rates tend to weaken its attractiveness because they increase the opportunity cost of holding non-returnable metal.
Oil price stability
Likewise, oil prices were largely stable in early Asian trade today, Thursday, as investors assessed optimism related to the demand outlook in China, once morest the backdrop of a possible hike in interest rates in central banks around the world.
By 01:21 GMT, Brent crude futures rose 1 cent to $82.71 a barrel, before falling slightly during morning trading.
West Texas crude futures, the US mediator, fell 4 cents to $77.24 a barrel, before continuing to decline slightly.
And yesterday, Wednesday, the weekly review of the US Department of Energy revealed, Low oil stocks In the US Strategic Reserve, last week increased by 4.7 million barrels to reach 382.3 million barrels.
Bankman Fred: I have “almost nothing” with a $26 billion demise
written by Alexandra Hartman Editor-in-Chief
Sam Bankman is uniquewho at one point was worth $26 billion, now says he owns “almost nothing”.
Bankman who was a strip magnate cryptocurrency He put all his assets on the stock exchange.FTXHe and its sister company, Alameda Research, founded it, and he only has one credit card left linked to a bank account with $100,000. Bankman added that he is outspoken and has no money hidden, during a video conference at a conference organized by The New York Times.
Fred Bankman’s downfall came swiftly. In just a few days, he lost $16 billion as his empire went bankrupt.
Bloomberg index trimmed For billionaires The value of his ownership stakes in FTX and Alameda is zero. It also removed his holding of Robin Hood Markets from his wealth account following a report that it was in his possession through Alameda and may have been used as collateral for loans.
It would be impossible to ascertain whether Fred Bankman was telling the truth, and Bloomberg may not have tracked all of his assets. A report last November indicated that he owns more than $500 million in venture capital companies, including Sequoia, and was an investor in media startup Semafor. But if he had acquired those assets via Alameda, the losses might have wiped them out.
The dollar crisis in Egypt is resurfacing on the surface of imports
written by Alexandra Hartman Editor-in-Chief
Crisis returned Hard currency in Egypt It reappeared during the past two weeks, following a number of banks stopped opening new letters of credit or collection documents for importers, due to the scarcity of the dollar in the largest market in the region in terms of the number of consumers.
It was Egyptian Central Bank Last October, he “gradually” canceled the instructions for using documentary credits in import financing operations, leading to their complete abolition in December, and returning to the old system through “collection documents.”
This coincided with the liberalization of the exchange rate, and banks began to provide dollars to importers. However, the situation changed during the past two weeks amid a severe shortage of hard currency, which was reflected in an almost complete halt to import operations, with the exception of fuel and food.
One of the major importers of household appliances in Egypt told Al-Sharq, on condition of anonymity, that “the (import) process has been completely stopped for two weeks, as there is no hard currency, and the banks are satisfied with agreeing verbally, but it is not implemented, to return and claim that it is proceeding according to priorities.” In parallel with the sharp rise in the price of the dollar in the parallel market.. and we do not know what to do.
Al-Sharq sent a text message to the Central Bank of Egypt to find out its opinion regarding the availability of hard currency for importers, but it did not get an immediate response.
funding gap
Egypt did not succeed in reaching an agreement with International Monetary Fund To obtain direct financing worth $3 billion, within credit facilities exceeding $9 billion, in attracting foreign investments to the country, especially to the stock market, from which more than $20 billion of hot foreign money has exited since the Russian-Ukrainian war, according to statements by Finance Minister Mohamed Maait. .
Egypt needs $28 billion until the end of 2023 in order to refinance its outstanding debts, pay debt interest and finance the current account deficit, according to Deutsche Bank, in addition to an additional $20 billion required in the following year. Egypt’s net international monetary reserves, which are just over $33 billion, cannot bear this burden. This has caused fears that Egypt will continue to need to tap the debt markets.