By Reuters Staff
1/ ECB DAY
FILE PHOTO: European Central Bank (ECB) headquarters building is seen in Frankfurt, Germany, March 7, 2018. REUTERS/Ralph Orlowski/File Photo
The European Central Bank meets on Thursday and will likely be pressed on signs of divisions over the future pace of bond purchases, which have been stepped up recently to prevent a rise in borrowing costs from derailing the recovery.
Dutch central bank head Klaas Knot believes the acceleration is temporary, while ECB chief Christine Lagarde says the economy is still standing on “crutches” and stimulus cannot be withdrawn.
The euro area is still grappling with lockdowns and a third wave of COVID-19 but business activity appears to be holding up. The April flash purchasing managers index on Friday should provide fresh clues on the outlook. Signs of a swift recovery could raise questions over when the ECB will slow its bond buying, putting recent bond market calm to the test.
By Reuters Staff
2 Min Read
MOSCOW (Reuters) - The Kremlin said on Friday that Russian President Vladimir Putin would decide what counter sanctions to impose on Washington, a day after U.S. President Joe Biden hit Moscow with an array of punitive measures, but gave no indication of timing.
FILE PHOTO: Russian President Vladimir Putin attends a session of the board of trustees of the Russian Geographical Society via a video conference call in Moscow, Russia April 14, 2021. Sputnik/Alexei Druzhinin/Kremlin via REUTERS
The U.S. government on Thursday blacklisted Russian companies, expelled Russian diplomats and barred U.S. banks from buying sovereign bonds from Russia’s central bank, national wealth fund and Finance Ministry.
Turkish lira falls as dovish c.bank weighs MSCI EM FX index set for best week in 4 months
April 16 (Reuters) - Russia’s rouble rebounded on Friday after steep losses on fresh sanctions from the United States, while Turkey’s lira fell sharply after investors saw the new central bank governor as striking a dovish tone.
The rouble jumped 1.2% on Friday, with Morgan Stanley and JPMorgan both forecasting a bigger interest rate hike by the central bank, following U.S. sanctions on the country’s debt market.
The rouble had tumbled nearly 1% on Thursday after Washington announced sanctions on Russia over alleged election interference and malicious cyber activity. Russian bonds were also stable after settling higher at the end of a volatile session on Thursday.
(Updates prices, adds BCS comment)
MOSCOW, March 22 (Reuters) - The Russian rouble tumbled towards 75 against the dollar in volatile trade on Monday, touching a more than two-week low as new sanctions against Moscow loomed and Turkey’s nose-diving lira led to a drop in risk appetite.
By 1519 GMT, the rouble was 1% weaker against the dollar at 74.88. Earlier, it slumped to 74.9300, its weakest mark since March 4.
It had lost 1.2% to trade at 89.30 versus the euro , crossing the 89 threshold for the first time since March 5.
Turkey’s lira briefly fell 15% to near its all-time low after President Tayyip Erdogan’s shock weekend ousting of a hawkish central bank governor sparked fears of a reversal of recent rate hikes, putting pressure on riskier assets.
6 Min Read
NEW YORK (Reuters) - Excess cash in the financial system has pressured overnight interest rates, in some instances pushing them negative, which, analysts said, could prompt the Federal Reserve to lift the short-term rates it manages.
FILE PHOTO: The Federal Reserve building is set against a blue sky in Washington, U.S., May 1, 2020. REUTERS/Kevin Lamarque/File Photo
The overnight repurchase rate, which measures the cost of borrowing short-term cash using Treasuries or other debt securities as collateral, dropped to as low as -0.06% in late March and hit that level again on Wednesday, before stabilizing at around 0.01% on Friday.