Last update: Wed, 28 Sep 2016 08am

Money and Banking: World


The US dollar rose against the euro on Tuesday after concerns surrounding Deutsche Bank caused general unease over Europe's banking sector, while the Mexican peso rallied on short-covering after first US presidential debate. Deutsche Bank shares hit a record low on Tuesday before turning mostly flat a day after Germany's biggest lender said it had no need for German government help with a $14 billion US demand to settle claims it missold mortgage-backed securities.
The dollar was on the back foot and the safe-haven yen was buoyant as caution gripped the market ahead of the closely-watched US presidential debate. Democrat Hillary Clinton and Republican Donald Trump will square off at 0100 GMT. "The first presidential debate will not necessarily decide the entire outcome, but it could potentially bring instability to the equity markets by increasing uncertainty over who could win the election," said Junichi Ishikawa, senior FX strategist at IG Securities in Tokyo.
Three months after Britain's vote to leave the European Union, fears in currency markets of a "hard Brexit" that would drive an exodus of banks from London have knocked sterling to within sight of its weakest levels in decades. It has been a rollercoaster ride for investors and companies worried by or speculating on the value of the pound. It slumped by more than 20 US cents in the days following the shock result of the June 23 vote but had recovered around a third of that by early this month.
Interbank buy/sell rates for the taka against the dollar on Tuesday. 78.40-78.40 (previous 78.40-78.40).
Emerging Asian currencies turned firmer on Tuesday, with risk appetites improving as many market participants judged US Democrat presidential candidate Hillary Clinton the winner of the first debate with Republican opponent Donald Trump. The Indonesian rupiah hit a 17-month peak on suspected inflows into the first phase of the country's tax amnesty programme, where participants will be charged with the lowest fee and which ends on September 30.
The Mexican peso surged in Asian trade on Tuesday, buoyed by the view that US presidential candidate Hillary Clinton did better than her rival Donald Trump in a closely-watched television debate. The Mexican peso gained about 2 percent on the day to 19.488 to the dollar, putting it on track for its best daily performance since February. The peso rose to 19.4805 at one point on Tuesday.
The Sri Lankan rupee ended weaker for a second straight session on Tuesday as seasonal demand for dollar from importers outpaced greenback sales by exporters and banks, dealers said. The spot rupee ended at 146.45/50 per dollar, compared with Monday's close of 146.35/45. The spot-next forwards ended at 146.48/58 compared to the previous close of 146.38/48, and edged down from Friday's close of 146.30/40.