This scenario is part of a widespread concern about interest rate hikes by central banks in developed countries, and that they do it with the same violence that they have been doing, attentive to controlling inflation that is sustained at its maximum for several decades. The fear sent markets reeling in the third quarter and casts a shadow over growth this month.
The euro subtracts 1%, to 0.9879 dollars, after rising 1.7% on Tuesday, while the British pound falls 1.5% to $1.1294, after rising for six consecutive sessions. Her downfall was somewhat prolonged when the British Prime Minister, Liz Truss, pledged to reduce debt as a proportion of national income, just over a week after his government’s plans to cut taxes and increase borrowing spooked markets. As a consequence, Truss He had to go back on his program.
The recent gains of most currencies against the dollar they have been supported by the hope of investors and traders that the US Federal Reserve will raise interest rates less than expected. Nevertheless, optimism seemed to fade a bit on Wednesdayand stocks and bonds reduced their earnings.
The fifth consecutive 50 basis point hike in rates by the Reserve Bank of New Zealand (RBNZ) reminded investors on Wednesday that inflation remains the main objective of central banks.
The performance of world bonds, which moves inversely to prices, rose after falling sharply in recent days, while US stock futures fell. The New Zealand dollar loses 0.15% to $0.5724after advancing up to 1.3% in the session, the Australian dollar down 0.6% to 0.6463 dollars and the yen yields 0.14%, to 144.36 units per dollar.
Source: Ambito
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