FX

Lower US Rates Help Major Currencies Rise Against The Dollar

In emerging markets, the Brazilian real rose close to 1% against the dollar, while the Peruvian Sol and Chilean Peso fell further

Published ET

Spreads of 10Y US TIPS with similar foreign securities | Sources: ϕpost, Refinitiv data

Spreads of 10Y US TIPS with similar foreign securities | Sources: ϕpost, Refinitiv data

Twitter iconFacebook iconLinkedIn iconemail iconWhatsApp icon

QUICK SUMMARY

  • The US Dollar Index is down -0.2% at 89.8
  • Euro up 0.3% at 1.2215 (YTD: +0.0%)
  • Yen up 0.2% at 108.74 (YTD: -5.0%)
  • Onshore Yuan up 0.2% at 6.4177 (YTD: +1.7%)
  • Swiss franc up 0.1% at 0.8969 (YTD: -1.3%)
  • Sterling up 0.1% at 1.4155 (YTD: +3.5%)
  • Canadian dollar up 0.2% at 1.2039 (YTD: +5.8%)
  • Australian dollar up 0.3% at 0.7752 (YTD: +0.8%)
  • NZ dollar up 0.6% at 0.7215 (YTD: +0.4%)
Sources: ϕpost, Refinitiv dataSources: ϕpost, Refinitiv data

RATES SPREADS

  • 5Y German-US interest rates spread 1.0 bp tighter, positive for the euro
  • 5Y Japan-US rates spread 1.3 bp tighter, positive for the yen
  • 5Y Chinese-US rates spread 3.0 bp wider, positive for the yuan
Sources: ϕpost, Refinitiv dataSources: ϕpost, Refinitiv dataSources: ϕpost, Refinitiv dataSources: ϕpost, Refinitiv data

VOLATILITIES

  • Deutsche Bank USD Currency Volatility Index currently at 6.32, down -0.03 on the day (YTD: -0.97)
  • Euro 1-Month At-The-Money Implied Volatility currently at 5.71, unchanged (YTD: -1.2)
  • Japanese Yen 1M ATM IV currently at 5.28, down -0.2 on the day (YTD: -0.8)
  • Offshore Yuan 1M ATM IV currently at 4.05, up 0.3 on the day (YTD: -1.6)
Sources: ϕpost, Refinitiv dataSources: ϕpost, Refinitiv data

NOTABLE MOVES IN SOVEREIGN CDS

  • Peru (rated BBB+): up 4.8 basis points to 93 bp (1Y range: 52-97bp)
  • Russia (rated BBB): up 4.8 basis points to 95 bp (1Y range: 72-129bp)
  • Government of Chile (rated A-): up 2.2 basis points to 71 bp (1Y range: 43-87bp)
  • United Arab Emirates (rated AA-): up 0.5 basis points to 61 bp (1Y range: 50-62bp)
  • Vietnam (rated BB): up 0.8 basis points to 103 bp (1Y range: 90-224bp)
  • Panama (rated BBB-): up 0.5 basis points to 72 bp (1Y range: 44-115bp)
  • Mexico (rated BBB-): up 0.4 basis points to 94 bp (1Y range: 79-172bp)
  • Turkey (rated BB-): down 2.0 basis points to 396 bp (1Y range: 282-597bp)
  • Argentina (rated CCC): down 15.0 basis points to 1,909 bp (1Y range: 1,049-6,788bp)
  • Indonesia (rated BBB): down 0.7 basis points to 77 bp (1Y range: 66-172bp)
Sources: ϕpost, Refinitiv data

NOTABLE OTHER MOVERS TODAY

  • Brazilian Real up 0.8% (YTD: -2.4%)
  • Malawi Kwacha up 0.8% (YTD: -3.1%)
  • Moldovan Leu up 0.7% (YTD: -2.9%)
  • Belize Dollar down 1.1% (YTD: 0.0%)
  • Iceland Krona down 1.2% (YTD: +3.3%)
  • Chilean Peso down 1.2% (YTD: -2.6%)
  • Barbados Dollar down 1.5% (YTD: 0.0%)
  • Peru Sol down 1.5% (YTD: -5.0%)
  • Afghani down 2.1% (YTD: -2.9%)
  • CFA Franc BEAC down 2.9% (YTD: -0.4%)