Growing fiscal concerns in some of the world’s biggest economies are adding momentum to a so-called “debasement trade,” as investors flock to the perceived safety of Bitcoin, gold and silver while pulling away from major currencies. The yen tumbled on Monday as pro-stimulus lawmaker Sanae Takaichi was set to become Japan’s next prime minister. French bond spreads blew out and the euro slid after the prime minister resigned, hurling the country into another political crisis. The dollar, which has weakene ...

Group 1 - The U.S. dollar showed resilience against the Vietnamese dong, trading at VND26,446 at Vietcombank and VND26,620 in the informal market, despite a one-week low against major currencies [1] - The dollar index, measuring the currency against six major peers, was recorded at 97.814, having dipped to a low of 97.633, indicating a notable decline since last Wednesday [2] - The euro edged up to $1.1738, following a rise to $1.1762, while the dollar remained flat at 147.92 yen after a 1.2% drop over the previous three days [3] Group 2 - Political developments regarding the U.S. government shutdown could lead to a further decline in the dollar, as weak economic data may exacerbate the situation [4] - Market attention is shifting towards private-sector indicators due to the lack of official economic data, with heightened responsiveness expected as the Federal Reserve's monetary policy decision approaches on October 29 [3]

By Mike Dolan LONDON (Reuters) -What matters in U.S. and global markets today By Mike Dolan, Editor-At-Large, Finance and Markets With Washington closed after Tuesday's congressional impasse, markets are left in a bit of quandary about how to interpret the hiatus and which economic data to focus on if this week's key jobs reports are furloughed along with government workers. The only thing investors have to go on is how markets behaved during previous closures, pretty nonchalantly for the most part and ...

The dollar index (DXY00) on Friday fell by -0.41%.  The dollar was under pressure after Friday's report on the August core PCE price index, the Fed's preferred gauge of inflation, came in right on expectations, which may allow the Fed to keep easing monetary policy. The dollar extended its losses on Friday after the University of Michigan's US September consumer sentiment index was unexpectedly revised lower to a four-month low. Losses in the dollar were limited as Friday's better-than-expected reports ...

Summary of Key Points from the Conference Call Industry Overview - The report focuses on the **Dollar's dominance and depreciation** within the context of the international financial system, analyzing its current status and future outlook. Core Insights and Arguments 1. **Dollar's Future**: The Dollar is unlikely to be replaced soon, but it is expected to depreciate due to the US economy's less exceptional performance, making it harder to attract unhedged capital flows [3][4][5] 2. **De-dollarization Evidence**: There is limited evidence of de-dollarization despite a decline in the Dollar's share of central bank reserves by approximately 8 percentage points since 2015. The Dollar remains dominant in global debt issuance, cross-border transactions, and spot FX trading volumes [10][12][16] 3. **Structural Factors**: The US's share of global debt, GDP, and trade are more significant for the Dollar's internationalization than short-term financial swings. The gradual erosion of Dollar dominance is anticipated, but displacement appears distant [3][32][41] 4. **TINA Factor**: Attempts to diversify away from Dollar dominance are hindered by the unmatched scale, liquidity, and network effects of the Dollar. Alternatives like the Euro and Renminbi face significant challenges [4][58][61] 5. **Forward-Looking Dollar View**: The Dollar is expected to depreciate further due to less exceptional economic performance and a high valuation that needs correction. The Euro and Yuan are projected to strengthen due to favorable economic conditions in Europe and China [65][69][70] Additional Important Considerations 1. **Impact of US Policies**: The US's evolving trade and security policies may impact its share of global trade, which could have significant implications for Dollar internationalization. A 5 percentage point reduction in the US's share of global trade could lead to a ~2.5 percentage point decrease in the Dollar's global usage [42][45] 2. **Historical Context**: Historical patterns indicate that shifts in currency dominance can be slow and complex, often influenced by geopolitical factors and institutional considerations. The UK’s experience with Sterling illustrates this inertia [45][53] 3. **Stablecoins and Dollar Dominance**: The rise of Dollar-pegged stablecoins reinforces the Dollar's global standing, as the majority of circulating stablecoins are Dollar-based [54][60] 4. **Gradual Changes**: The report emphasizes that any erosion of Dollar dominance is likely to be a multi-decade process, while further Dollar depreciation is expected in the near term [71][74] This summary encapsulates the key points discussed in the conference call regarding the Dollar's current status and future outlook in the global financial system.

By Chibuike Oguh NEW YORK (Reuters) -The dollar fell but was still on course to notch a second straight week of gains against major peers on Friday after data continued to show U.S. economic resilience, potentially complicating the Federal Reserve's efforts to cut interest rates. The dollar was down 0.21% to 149.48 against the Japanese yen, on track for a fifth consecutive week of gains and trading near its highest level since August 1. The euro was up 0.31% to $1.1701. It was on course to finish the ...

Group 1: Dollar Index and Economic Indicators - The dollar index (DXY00) is down -0.02%, influenced by dovish comments from Fed Governor Michelle Bowman regarding the need for decisive action to lower interest rates due to a weakening labor market [1][4] - The US Q2 current account balance showed a deficit of -$251.3 billion, which was smaller than the expected deficit of -$256.6 billion, providing some support for the dollar [3] - The September S&P manufacturing PMI for the US fell -1.0 to 52.0, which was weaker than the expected 52.2, contributing to the dollar's decline [1][3] Group 2: Federal Reserve and Interest Rates - Markets are currently pricing in a 91% chance of a -25 basis point rate cut at the next FOMC meeting scheduled for October 28-29 [4] - Fed Governor Michelle Bowman emphasized the need for the FOMC to act decisively in response to deteriorating labor market conditions [4] Group 3: Eurozone Economic Performance - The euro is down -0.03% after the Eurozone September S&P manufacturing PMI fell -1.2 to 49.5, which was weaker than the expected no change at 50.7 [5][6] - Despite the decline in manufacturing PMI, the Eurozone's September S&P composite PMI rose +0.2 to 51.2, marking the strongest pace of expansion in 16 months [5][6]

The dollar index (DXY00) today fell from a 1-week high on Monday and finished down by -0.31%.  The dollar is under pressure on the outlook for easier Fed policy, with the FOMC expected to cut interest rates by another 50 bp this year.  The dollar found support Monday on hawkish comments from St. Louis Fed President Alberto Musalem, Atlanta Fed President Raphael Bostic, and Cleveland Fed President Beth Hammack, who said they see limited room for additional Fed interest rate cuts. The dollar is also being u ...

The dollar index (DXY00) today fell from a 1-week high and is down by -0.12%.  The dollar is under pressure on the outlook for easier Fed policy, with the FOMC expected to cut interest rates by another 50 bp this year.  The dollar found support today on hawkish comments from St. Louis Fed President Alberto Musalem and Atlanta Fed President Raphael Bostic, who said they see limited room for additional Fed interest rate cuts. The dollar is also being undercut by concerns over Fed independence, which could p ...

The euro in the pockets of 350 million Europeans from Dublin to Nicosia is among the EU's most tangible achievements. Nearly wrecked by a sovereign debt crisis 15 years ago, it's the fruit of a three-decade process of banking and monetary reforms that remains a work in progress."Fundamentally, the EU struggles to concentrate on many crises at the same time," Enrico Letta, the Italian ex-prime minister who last year presented his own report on reforms needed for the region's single market, told Reuters.Propo ...