Euro, sterling knocked by growth worries and UK inflation at new 40-year high

22/6/2022 4:52:00 PM

Euro, sterling knocked by growth worries and UK inflation at new 40-year high

Euro, Pound Sterling

Euro , sterling knocked by growth worries and UK inflation at new 40-year high

LONDON, June 22 — The euro and sterling fell today as investors turned to the safe haven dollar as part of a move away from riskier assets which also saw a stock market rally...

Wednesday, 22 Jun 2022 4:40 PM MYTLONDON, June 22 — The euro and sterling fell today as investors turned to the safe haven dollar as part of a move away from riskier assets which also saw a stock market rally fizzle out, and after data showed British consumer price inflation hit a new 40-year high.

With investors turning nervous again about global growth prospects, the US dollar gained ground on most peers. The yen hit a fresh 24-year low as rising US and European bond yields contrasted with low Japanese interest rates.Sterling was down 0.8 per cent at US$1.2198 (RM5.37), touching its lowest level in almost a week, after British consumer prices rose to 9.1 per cent last month, the highest rate out of the Group of Seven countries, underlining the severity of the cost-of-living crunch.

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for the latest news you need to know.for the latest news you need to know.Eto'o agreed to pay a fine of 1.A (June 20): UK rail workers will begin Britain’s biggest rail strike in three decades on Tuesday (June 21) after unions rejected a last-minute offer from train companies, bringing services nationwide to a near standstill.

Wednesday, 22 Jun 2022 4:40 PM MYT LONDON, June 22 — The euro and sterling fell today as investors turned to the safe haven dollar as part of a move away from riskier assets which also saw a stock market rally fizzle out, and after data showed British consumer price inflation hit a new 40-year high. With investors turning nervous again about global growth prospects, the US dollar gained ground on most peers. The euro was 0. The yen hit a fresh 24-year low as rising US and European bond yields contrasted with low Japanese interest rates. "I admit the facts and I am going to pay what I'm due, but let it be known that I was a just a child then and that I always did what my former agent Jose Maria Mesalles, who I considered like a father, asked me to do at that time," Eto'o, who is now 41, told the court in Barcelona on Monday. Sterling was down 0.0563 (RM4.8 per cent at US$1.9 billion) of budget cuts — £2 billion each for Transport for London and the national railways.

2198 (RM5. Meanwhile, ECB policymaker Francois Villeroy de Galhau said the central bank’s planned instrument against financial fragmentation must allow it to back up its commitment to defend the euro. The sentences were suspended as neither Eto'o nor Mesalles have a criminal record and the terms are under two years.37), touching its lowest level in almost a week, after British consumer prices rose to 9.1 per cent last month, the highest rate out of the Group of Seven countries, underlining the severity of the cost-of-living crunch. Elsewhere, the dollar rose 0. Mike Bell, global market strategist at J.P.35 yen, not far off a 24-year high of 135. Yet the RMT argues that many of the strikers are among the lowest paid on the railway networks, including cleaners.

Morgan Asset Management, said as real wages in Britain are already being squeezed by higher prices, increasing borrowing costs further “could feel like rubbing salt in the wound” and elevates the risk of a recession. He, however, expected the Bank of England to keep raising rates in an effort to tackle inflation until clear signs emerge that the labour market is weakening. The dollar index, which tracks the greenback against six major peers including the euro and the yen, was down 0. “The Bank of England (is) stuck between a rock and a hard place,” he said. Today’s other main event is the start of US Federal Reserve Chair Jerome Powell’s two-day testimony to Congress, with investors looking for further clues on whether another 75 basis point rate hike is on the cards at the Fed’s July meeting.10, with eyes on Federal Reserve Chair Jerome Powell’s testimony to Congress, which kicks off tomorrow. The dollar index was 0. Tuesday will also see action by 10,000 London Underground workers in a separate dispute over jobs and pensions.

33 per cent higher at 104. Two other Fed policymakers are due to make public remarks later today, with traders watching their comments closely for clues about the interest rate trajectory.8. The euro fell 0.3 per cent after Reserve Bank of Australia governor Philip Lowe signalled a lot more policy tightening ahead, although he played down the chances of a super-sized 75 basis point rate hike.4 per cent to US$1.0497.2 per cent to 0. — Kwasi Kwarteng (@KwasiKwarteng) June 20, 2022 Subscribe to Mid-day email alert We deliver news to your inbox daily.

The yen was last drifting 0.3 per cent lower at 136.4 per cent to US$1.3 per dollar, having hit 136.71 in early trade, its lowest since October 1998. Largest cryptocurrency bitcoin was up 2 per cent at US$20,978 having failed to break strongly above or below the psychologically significant US$20,000 level in recent days. Analysts see no immediate end to a sell-off that has seen the yen weaken 18 per cent this year from 115.

08 at the end of 2021. The currency has been weakening as higher energy prices put pressure on Japan’s current account and because of the ever- widening gap between yields on Japanese government bonds and US Treasuries. The Bank of Japan last week maintained ultra-low interest rates and vowed to defend its policy of yield curve control (YCC), which effectively caps the yield on the 10-year Japanese government bond at 0.25 per cent. “Dollar/yen is continuing to trade on the Treasury yields, which have been stable but with the 10-year staying above the 3.

20 per cent level while the Bank of Japan has done a lot to defend YCC,” said Redmond Wong, market strategist at Saxo Markets Hong Kong. Commodity currencies Norwegian crown fell 1.3 per cent against the dollar to 9.9740, and the Australian dollar fell 1.1 per cent to US$0.

6898, as low commodity prices also weighed. — Reuters Advertisement .