Last update: Tue, 25 Oct 2016 09am

Money and Banking: World


The US dollar hovered near a roughly nine-month high against a basket of major currencies and touched a one-week high against the yen on Monday on growing expectations of a Federal Reserve interest rate increase in December. Recent positive economic data and comments from central bank officials have bolstered those expectations, with traders on Monday seeing a nearly 70 percent chance that the Fed would hike in December, according to data from CME Group's FedWatch program.
The dollar edged up to a fresh eight-month high against a basket of currencies in Asian trade on Monday, buoyed by expectations that the US Federal Reserve will raise interest rates this year. The dollar index, which tracks the greenback against a basket of six major counterparts, added 0.1 percent to 98.818 after rising as high as 98.846, which was its loftiest peak since February 3.
Sterling held above $1.22 on Monday, bolstered by better risk sentiment across global markets, though expectations that Britain's economy would suffer due to the country's likely exit from the European Union was limiting gains. In the past few weeks when politics took the front seat, concerns about a "hard" Brexit by Britain and a hard-line stance by the EU in the negotiations that are likely to start next year saw sterling take a battering and fall to a record low on trade-weighted terms.
The dollar hit a nine-month high against a basket of currencies on Monday, buoyed by expectations that the Federal Reserve will raise US interest rates this year and that Donald Trump will not become the US president. After three straight weeks of gains, the dollar index - which tracks the greenback against a basket of six major currencies - rose as high as 98.846 in early trade on Monday, its strongest since February 3.
Interbank buy/sell rates for the taka against the dollar on Monday. 78.40-78.40 (previous 78.40-78.40).
China's yuan slipped to fresh six-year lows on Monday as the dollar hovered near a nine-month high on expectations of a US interest rate hike in December, while most emerging Asian currencies took a breather. Onshore and offshore yuan fell to their weakest levels since 2010, as the central bank set its daily guidance rate at a six-year low, reflecting the greenback's strength.
The Sri Lankan rupee ended weaker on Friday due to dollar demand from importers but moral suasion by the central bank discouraged trading in the spot currency market, dealers said. Rupee forwards were active, with the spot-next ending at 147.95/148.05 per dollar, weaker than its previous close of 147.60/70. The spot rupee was quoted at 146.90/95 per dollar, but there were hardly any trades.