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The FX markets are focused on the diverging interest rate policies of the world’s central banks. As the US dollar strengthens, the Japanese yen is trading at its weakest point in five years as the Bank of Japan is expected to keep rates low. The euro remains close to 18-month lows as the European Central Bank is also keeping in place a highly accommodative monetary policy. The Fed is now expected to raise rates three times next year.
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FX Rates
January 4, 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 1.1284 GBP/USD 1.3523 USD/CAD 1.2708 AUD/USD 0.7215 USD/JPY 116.31 USD/CNH 6.3767 USD/ILS 3.0867 USD/MXN 20.5616 USD/CHF 0.9166 USD/INR 74.5550 USD/BRL 5.6915 USD/SGD 1.3564 USD/DKK 6.5914 USD/SEK 9.1168 USD/NOK 8.8676
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USD
The dollar remains strong. ISM Manufacturing data and JOLTS job openings data are due out later this morning.
GBPThe British pound continued to climb vs. most every currency as the Bank of England is expected to raise interest rates before most central banks. Despite contentious Brexit discussions, the eurozone remains a very important trading partner for the UK and the British pound is trading at its strongest level in two years vs. the euro.
EURThe euro lost ground as global investors see the European Central Bank holding interest rates at or close to zero for much longer than other central banks. The British pound and the US dollar are both stronger again today continuing a trend from last year.
CADThe Canadian dollar was weaker this morning on new virus restrictions put in place in Ontario. But CAD rebounded as OPEC+ participants agreed to continue to slowly increase the global supply of oil reflecting higher expected demand. The price of oil rose on the news as recent production levels confirm oil-producing nations continue to stick to production targets.
ASIA/PACIFICThe Japanese yen lost ground vs. the US dollar this morning and is now trading at its weakest level in five years. The combination of a robust outlook for the global economy and the central bank of Japan keeping interest rates low is expected to further weaken the yen.
For more analysis on FX markets or information regarding SVB's FX services:
See all of SVB's latest FX information and commentary at www.svb.com/trends-insights/foreign-exchange-advisory
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| Source: Bloomberg | |
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