Forex

BoE will only pause bond sales if market is 'dysfunctional' - Pill

BoE will only pause bond sales if market is 'dysfunctional' - Pill

LONDON, Sept 27 (Reuters) - The Bank of England will not sell British government bonds into a dysfunctional market, but a sharp repricing that reflects changing fundamentals would be not be a reason to pause the programme, the BoE's Chief Economist Huw Pill said. "We're not going to sell, if you like, into some sort of dysfunctional market," Pill said.

Gold bounces from 2-1/2-year trough as dollar rally cools

Gold bounces from 2-1/2-year trough as dollar rally cools

* Dollar off two-decade peak hit on Monday * Fed's Evans sees interest rates at 4.25-4.5% by year end * Gold could fall below $1,600/oz level, analyst says By Kavya Guduru Sept 27 (Reuters) - Gold prices rebounded from a 2-1/2-year low on Tuesday as a pause in the U.S. dollar's rally helped restore greenback-priced bullion's allure, although risks from looming rate hikes persisted.

Hungary central bank has repo lines worth over 10 bln euros - Virag

Hungary central bank has repo lines worth over 10 bln euros - Virag

BUDAPEST, Sept 27 (Reuters) - The National Bank of Hungary (NBH) has repo lines with various partners worth over 10 billion euros and is continuously assessing how to expand this framework, Deputy Governor Barnabas Virag told a briefing on Tuesday. He also said the bank's expectation was that its decision to raise banks' required reserve ratio would drain about 2.7 trillion forints ($6.40 billion) worth of forint liquidity, helping the bank tighten monetary conditions from October onwards.

Brazil's cenbank sells $1 bln in auction with repurchase agreement

Brazil's cenbank sells $1 bln in auction with repurchase agreement

SAO PAULO, Sept 27 (Reuters) - Brazil's central bank on Tuesday sold $1 billion on the interbank market in currency selling auctions with a repurchase agreement. The central bank had announced the call for auctions on Monday night. A similar deal had been made last Friday, when the central bank injected $2 billion into the market. The central bank usually uses this type of auction in moments of liquidity shortage in the spot exchange market, which is common at the end of the year.

Sterling higher as BoE, Treasury seek to calm markets, outlook remains cautious

Sterling higher as BoE, Treasury seek to calm markets, outlook remains cautious

By Samuel Indyk LONDON, Sept 27 (Reuters) - The British pound was higher against the dollar on Tuesday, a day after hitting a record low, as the Bank of England and UK Treasury attempted to soothe market concerns after the government announced a raft of unfunded tax cuts. The battered pound hit an all-time low of $1.0327 on Monday, prompting calls for a big inter-meeting interest rate hike from the Bank of England, and although the bank and government acknowledged the turmoil in markets, they st

Rouble steadies as Russian stocks, bonds halt slide

Rouble steadies as Russian stocks, bonds halt slide

* This content was produced in Russia where the law restricts coverage of Russian military operations in Ukraine By Alexander Marrow MOSCOW, Sept 27 (Reuters) - The rouble steadied on Tuesday and Russian stocks largely halted a geopolitics-induced slide after sinking to their lowest for several months, as voting in referendums that could see four Ukrainian regions annexed by Russia neared its conclusion.

Dollar pauses for breath as fragile pound edges up

Dollar pauses for breath as fragile pound edges up

By Sinéad Carew and Alun John NEW YORK/LONDON Sept 27 (Reuters) - The dollar took a pause on Tuesday in what has been a relentless climb higher while sterling as well as the euro and Japanese yen recovered some ground from multi-year lows after unusually volatile trading in recent sessions. The dollar index, which measures the greenback against a group of major currencies, was last down 0.06% while Sterling GBP=D3 after earlier climbing more than 1% to $1.0837, was last up 0.69%.

UK tax cuts raise stakes for debt sustainability, Scope credit rating agency warns

UK tax cuts raise stakes for debt sustainability, Scope credit rating agency warns

LONDON, Sept 27 (Reuters) - Britain's new tax cut and spending plans will push up its debt levels and raise the stakes in terms of the sustainability of the country's public finances, credit rating agency Scope said on Tuesday. "We see UK debt-to-GDP returning to pandemic-era levels by 2027 whereas we had previously expected it to decline," Scope said in report titled "UK: tax cuts raise debt-sustainability stakes; growth, inflation challenges intensify." In isolation, the deterioration in the o

Bank of England's Pill sees "significant" move in November

Bank of England's Pill sees "significant" move in November

LONDON, Sept 27 (Reuters) - The Bank of England is likely to deliver a "significant policy response" to finance minister Kwasi Kwarteng's huge tax cuts but it should wait until its next scheduled meeting in November before making its move, BoE Chief Economist Huw Pill said. Kwarteng sent the pound tumbling and British government bond yields soaring with the announcement on Friday of sweeping tax cuts in a bid to shock the economy into a faster pace of growth.

Bank of England's Pill sees "significant" move, but only in November

Bank of England's Pill sees "significant" move, but only in November

By David Milliken and Marc Jones LONDON, Sept 27 (Reuters) - The Bank of England is likely to deliver a "significant policy response" to finance minister Kwasi Kwarteng's huge tax cuts but it should wait until its next scheduled meeting in November before making its move, BoE Chief Economist Huw Pill said. Kwarteng, following up on new Prime Minister Liz Truss's promise to sweep aside the economic "orthodoxy", sent the pound tumbling and British government bond yields soaring when he announced s

Bank of England's Pill sees 'significant' policy move, but only in November

Bank of England's Pill sees 'significant' policy move, but only in November

* Pill: BoE must give 'significant' response to new stimulus * BoE aims to wait until Nov. 3 before shifting policy * UK bond prices tumble again, 30-year yield nears 5% * Pill says only market 'dysfunction' will stop QT plans By David Milliken and Marc Jones LONDON, Sept 27 (Reuters) - The Bank of England is likely to deliver a "significant policy response" to finance minister Kwasi Kwarteng's huge tax cuts but wants to wait until its next scheduled meeting in November before making its move, B

C$ rebounds from 2-year low as Wall Street rallies

C$ rebounds from 2-year low as Wall Street rallies

* Canadian dollar strengthens 0.2% against the greenback * Loonie trades in a range of 1.3641 to 1.3741 * Price of U.S. oil rises 2.3% * Canadian bond yields rise across steeper curve TORONTO, Sept 27 (Reuters) - The Canadian dollar strengthened against the greenback on Tuesday as some calm returned to global financial markets after they were buffeted by the recent surge in bond yields, with the currency rebounding from a two-year low the day before.