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The markets reacted to both the Fed and the BoE raising interest rates by 25 basis points. Fed Chair Powell signaled that there could be as many as 6 additional rate hikes this year. Investors factored a 40% chance of a 50-basis point increase from the BOE, but the BOE favored a 25 basis point increase. Investors are looking to the next meeting in May where they expect another increase. Oil prices rebounded for the first time in the past three sessions lifting commodity currencies.
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FX Rates
March 17, 2022Rates are not real time. Rates are today's indicative mid-market rates as of time of publishing, which may vary. Please contact SVB for a current quote.
EUR/USD 1.1050 GBP/USD 1.3111 USD/CAD 1.2666 AUD/USD 0.734 USD/JPY 118.76 USD/CNH 6.3629 USD/ILS 3.238 USD/MXN 20.6341 USD/CHF 0.9395 USD/INR 75.8050 USD/BRL 5.0993 USD/SGD 1.3555 USD/DKK 6.7365 USD/SEK 9.4627 USD/NOK 8.8448
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USDThe Federal reserve raised interest rates by 25bps in yesterday’s meeting. Powell highlighted the need for price stability. While the 25 basis point increase will do little to slow rising inflation immediately, the Fed signaled that there could be up to six more rate hikes this year. Since the announcement, USD has been weaker against its peers as a general selloff was seen in the markets.GBPThe BoE raised its rates by 25 basis points this morning. This marked the third rate hike in a row for the BOE. The vote distribution for the increase was 8-1 where only one member of the Monetary Policy Committee opted for a 50 basis point increase. After the announcement of the increase GBP/USD rates fell to $1.31.EURThe European Central Bank’s President Lagarde stressed ability to increase rates as needed as the initial hopes of a ceasefire in Ukraine seems increasingly unlikely. European equities are down slightly on the day, reacting to the Kremlin’s position on no new peace talks. EUR/USD climbed to a two-day high of 1.1060.CADThe Canadian dollar advanced along with several other G-10 currencies over a generally weaker USD. Crude oil prices rebounded for the first time in four sessions buoying the loonie. WTI Crude Oil climbed 5% with prices around $100 a barrel.ASIA/PACIFIC
The Aussie dollar is the strongest of the G10 currencies heading into the trading day, which was driven by rising commodity prices, and jobs data beating expectations. AUD/USD rates have climbed to 0.7340.
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| Source: Bloomberg | |
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