Foreign exchange and sovereign debt markets were steady on Wednesday as the reaction from jolts from China’s economic stimulus and speculation on Japan’s monetary policy earlier in the week waned. 

In China, the onshore renminbi exchange rate, which moves within a trading band of 2 per cent in either direction, was 0.1 per cent weaker at Rmb 6.7974. On Tuesday the Chinese currency touched a fresh one-year low and the dollar held within sight of its 12-month high, hit last week. 

The US dollar index, measuring the greenback against a basket of peers, was unmoved in early trade on Wednesday while the Japanese yen was 0.1 per cent weaker at ¥111.25. 

The Australian currency was off 0.2 per cent at $0.7409 against the dollar after the country’s second quarter consumer inflation data came in a whisker below expectations. And the New Zealand currency was unchanged at $0.68. 

In the sovereign debt markets, yield the Japanese 10-year government bond was basically unchanged at 0.069 per cent after touching its highest level in six months on Monday on speculation about changes to the central bank’s policies. 

Yield on the US 10-year Treasuries was down 1bp at 2.939 per cent. And that on the Australian note was down 3bp at 2.688 per cent.

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