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Daily
FX Update

The PBOC calmed markets with an unaggressive daily currency fix

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Financial markets were calmed by the People's Bank of China setting the daily USD/CNY fixing lower and less aggressively than analysts had expected. Asian and European stocks rose overnight, and bond yields edged higher. At the same time, the White House is preparing to place tariffs on $300 billion of Chinese imports on September 1. Oil prices jumped after Saudi Arabia contacted other producers to stem the fall in prices. Currency markets were little changed.

“Remember that the storm is a good opportunity for the pine and the cypress to show their strength and their stability.”
Ho Chi Minh
  • FX Rates
    August 8, 2019

    Rates 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.


  • USD

    The dollar made slight gains overnight, reversing this week’s sell-off which had been triggered by the unexpected move in the Chinese yuan past the key RMB 7 per USD level on Monday. The dollar’s biggest gain was against the Japanese yen, which has benefited as a safe haven currency.

    GBP

    The UK pound moved little overnight, even after UK PM Boris Johnson said he fully expects to face a confidence vote after parliament returns from its summer recess.

    EUR

    Little change in the euro was seen overnight as markets were calmed by the PBOC and there were no key EU economic data releases.

    CAD

    The Canadian dollar edged higher overnight. Oil prices had jumped when a Saudi official said that they had phoned other oil producers to halt oil’s slide in prices.

    ASIA/PACIFIC

    Even after the US officially labeled China a “currency manipulator” early in the week, China has been unaggressive in its response. It set this morning’s USD/CNY reference rate at 7.0039 yuan per dollar, the weakest level since 2008, but lower than market expectations. The currency pair is trading near 7.0450, as traders are still bullish.

    INR

    The Indian rupee reversed a five-day losing streak against the dollar following reports that India will roll back a tax surcharge on foreign portfolio investors. The USD/INR dropped to 70.55 after reaching 70.98 yesterday.

Contact Us

For more analysis on FX markets or information regarding SVB's FX services:

Contact your respective SVB FX Advisor or the SVB FX Advisory Team at fxadvisors@svb.com.
See all of SVB's latest FX information and commentary at www.svb.com/foreign-exchange

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About the Author

Scott Petruska is Chief Currency Strategist and senior advisor for Silicon Valley Bank’s global financial services group, and is based in Boston, MA. He advises clients on currency and interest rate hedging strategies, and helps them with other aspects of global banking. He regularly writes blogs on topics covering the global financial markets, conducts client seminars and webinars, and speaks at regional financial conferences.

Petruska has more than 30 years experience in the currency and interest rate markets, and has lived and worked in Boston, Chicago, New York City, Singapore and Tokyo. Prior to joining SVB in 2009, he worked at several large international financial institutions, including National Westminster Bank, Irving Trust, Bank of New York, State Street Bank and Commerce Bank. He has been an institutional trader, product developer, analyst, salesperson and advisor.

Petruska has been awarded several professional designations, including the CFA (Chartered Financial Analyst), FRM (Financial Risk Manager) and CMT (Certified Market Technician). He earned his undergraduate degree in Finance & Banking from the University of Wisconsin.

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