U.S. Dollar Pulls Back Ahead Of Fed Minutes

The dollar on Wednesday pulled back after recent gains, amid hopes minutes of the U.S. central bank’s last monetary policy meeting may provide clues about the potential for more easing measures.

The ICE dollar index DXY -0.14% , which tracks the greenback against a basket of six major currencies, reached 83.306 in Asian trading hours, down from 83.377 in late North American trading on Tuesday.

The Federal Open Market Committee is due to release the minutes of its last interest rate setting meeting later in the global trading day.

“There is a particularly wide divergence in views on the FOMC, and the minutes may give some flavor as to what would be necessary (especially on the employment front) to garner enough support for more easing,” said Sue Trinh, strategist at RBC Capital.

The dollar reached a two-year high against the euro EURUSD +0.24% Tuesday and the common currency softened again on Wednesday, trading at $1.2258, from $1.2261 in late North American trading hours.

“For now, the forex market simply cannot shake its fundamental negativity towards the single currency,” said Simon Smith, chief economist at FXPro.

The British pound GBPUSD +0.20%  was at $1.5524, up slightly from $1.5511 reached late in the previous session.

Against the yen USDJPY -0.23% , the dollar traded at 79.32 yen, from ¥79.44. The Bank of Japan started a two-day policy meeting on Wednesday.

“While there is nothing very positive to say about Japan, this has never been a major negative for the yen, and the continued weakening of global data will tend to continue to provide the yen with support,” said currency strategists at Lloyds Corporate Markets.

The Australian dollar AUDUSD +0.55%  advanced to $1.0217, from $1.0186

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China’s PBC offers 24.8b yuan off reverse repo

People’s Bank of China (PBC) announced on Thursday a seven-day 24.8 billion-yuan reverse repo at an interest rate of 1.50 per cent.

Reverse repo is a tool used by central banks to manage liquidity. The PBC purchases securities from commercial banks through a bidding process, with an agreement to resell them back in the future.

Attribution: Amwal Al Ghad English

Subediting: Y.Yasser

Egypt’s CBE offers EGP 80b in T-bills

The Central Bank of Egypt (CBE) is offering 80 billion Egyptian pounds in treasury bills (T-bills) on Thursday, in coordination with the Ministry of Finance.

The auction is in two tranches: a 182-day T-bills worth 35 billion pounds to be matured on 08/07/2025, and a 364-day T-bills worth 45 billion pounds to be matured on 06/01/2026, as per the statement.

Treasury bills are short-term government debt instruments with maturities ranging from three months to a year.

Attribution: Amwal Al Ghad English

Subediting: Y.Yasser

Asian stocks begin ’25 on a down note

Asian stock markets started the new year on a weak note Thursday, struggling for momentum after a volatile end to 2024. The US dollar remained steady, and investor sentiment was cautious ahead of the new US presidential administration.

The start of 2025 appears less promising for equities, with uncertainty surrounding the policies of the incoming US President and a more hawkish Federal Reserve expected to dominate market discussions.

MSCI’s broadest index of Asia-Pacific shares outside Japan fell 1.2 per cent in December. The index was down 0.58 per cent during Thursday’s Asian session, with trading volumes thin due to a Japanese market holiday.

Chinese stocks faced significant losses, with the CSI300 blue-chip index down 2.65 per cent and the Shanghai Composite Index losing 2.36 per cent. Hong Kong’s Hang Seng Index slid 2.15 per cent.

Investors are closely watching China’s economic recovery in 2025 after officials pledged several support measures to boost growth. However, the potential for tariffs exceeding 60 per cent on Chinese imports could create a substantial headwind.

Elsewhere in the region, South Korea’s KOSPI remained flat. The index was Asia’s worst performer in 2024, with a decline of over 22 per cent in dollar terms, partly due to a deepening political crisis.

The dollar increased 0.14 per cent, trading at 157.18 yen, pushing the Japanese currency towards a five-month low. The euro ticked 0.08 per cent higher to $1.03615 but remained close to a one-month low.

Oil prices increased on Thursday, with Brent crude futures rising 0.25 per cent to $74.83 a barrel and US West Texas Intermediate crude gaining 0.28 per cent to $71.92. Spot gold traded 0.34 per cent higher at $2,632.68 an ounce.

Subediting: Y.Yasser

Asian stocks slip amid year-end caution

Asian stocks edged lower on Tuesday in thin, end-of-year trading as investors tempered expectations for US rate cuts in 2025 and awaited the incoming Trump administration’s policies.

MSCI’s Asia-Pacific index, excluding Japan, dipped 0.2 per cent but remained on track for an 8 per cent annual gain. Hong Kong’s Hang Seng rose 0.3 per cent, while China’s CSI300 index was flat after data showed slower manufacturing growth in December.

The dollar held strong near two-year highs, with the dollar index set for a 6.5 per cent annual gain, supported by elevated US Treasury yields. Meanwhile, the yen weakened over 10 per cent this year, marking its fourth consecutive annual decline.

On Wall Street, US stocks faced broad sell-offs Monday due to tax positioning and valuation concerns but remained on course for double-digit annual gains, with the Nasdaq up nearly 30 per cent in 2024. European futures signalled a weaker open, with key indices down 0.6-0.7 per cent.

In commodities, Brent crude fell 3.2 per cent in 2024 amid demand concerns, while gold surged over 26 per cent for its best year in a decade, fuelled by geopolitical tensions and safe-haven demand.

Attribution: Reuters

Subediting: Y.Yasser

Egypt’s c. bank issues $800m in T-bills

The Central Bank of Egypt (CBE), in coordination with the Ministry of Finance, is auctioning on Monday dollar-dominated treasury bills worth $800 million, according to a CBE statement on its website.

The T-bills will have a maturity of 364 days, falling under the category of short-term government debt instruments, according to an official statement published by the CBE.

Attribution: Amwal Al Gahd English

Subediting: Y.Yasser

(1 United States dollar = 49.71 Egyptian pounds)