Euro Ruffled by Catalonia Referendum
Euro Ruffled by Catalonia Referendum
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NEW YORK - The Euro took a knock in Asia on Monday as investors kept an anxious eye on an independence vote in Spain’s Catalonia, although surprisingly strong economic news out of China and Japan offered support to equities and commodities.
The Euro fell 0.3 percent after the violence-marred vote to trade at $1.1773, with liquidity lacking given holidays in China and South Korean markets.
Spanish police used batons and rubber bullets to thwart an independence vote in Catalonia on Sunday in a show of force that left hundreds injured, according to Catalan officials, and presented Madrid with a huge challenge to calm tensions in the region. The situation was fluid, with the head of the regional government opening the door to a potential declaration of independence from Spain.
Dealers emphasized there had been no major selling of euros as yet and neither was there any flow to safe havens, with investors reserving judgment.
As a result, the dollar was firmer on the Japanese yen at 112.88 and up 0.3 percent on a basket of currencies at 93.381. Gold eased in response to $1,275.06.
The dollar was aided by speculation President Donald Trump might choose former Federal Reserve Governor, Kevin Warsh to head the central bank.
Warsh is considered more hawkish than current chair Janet Yellen so his appointment might lead to faster hikes in interest rates. The risk was enough to nudge yields on two-year Treasuries up to 1.503 percent, ground not visited since late 2008.
Menawhile, rupiah exchange rate against US dollar (USD) in the opening session this morning collapsed to the level of Rp13.500/USD. The condition of the rupiah in the middle of the strengthening of USD to several major currencies of the world, including yen.
The position of rupiah based on the reference rate of Jakarta Interbank Spot Dollar Rate (Jisdor) BI, this morning opened collapsed worse to the level of Rp13.499/USD. The position worsened compared to last weekend's trading at the level of Rp13.492/USD.
Based on Bloomberg data, rupiah in morning session opened at the level of Rp13.478/USD or lethargic when compared to the previous end of the position Rp13.475/USD. But at 10:08 pm move to the level of Rp13.524/USD with a range of Rp13.475-Rp13.529/USD.
The Euro fell 0.3 percent after the violence-marred vote to trade at $1.1773, with liquidity lacking given holidays in China and South Korean markets.
Spanish police used batons and rubber bullets to thwart an independence vote in Catalonia on Sunday in a show of force that left hundreds injured, according to Catalan officials, and presented Madrid with a huge challenge to calm tensions in the region. The situation was fluid, with the head of the regional government opening the door to a potential declaration of independence from Spain.
Dealers emphasized there had been no major selling of euros as yet and neither was there any flow to safe havens, with investors reserving judgment.
As a result, the dollar was firmer on the Japanese yen at 112.88 and up 0.3 percent on a basket of currencies at 93.381. Gold eased in response to $1,275.06.
The dollar was aided by speculation President Donald Trump might choose former Federal Reserve Governor, Kevin Warsh to head the central bank.
Warsh is considered more hawkish than current chair Janet Yellen so his appointment might lead to faster hikes in interest rates. The risk was enough to nudge yields on two-year Treasuries up to 1.503 percent, ground not visited since late 2008.
Menawhile, rupiah exchange rate against US dollar (USD) in the opening session this morning collapsed to the level of Rp13.500/USD. The condition of the rupiah in the middle of the strengthening of USD to several major currencies of the world, including yen.
The position of rupiah based on the reference rate of Jakarta Interbank Spot Dollar Rate (Jisdor) BI, this morning opened collapsed worse to the level of Rp13.499/USD. The position worsened compared to last weekend's trading at the level of Rp13.492/USD.
Based on Bloomberg data, rupiah in morning session opened at the level of Rp13.478/USD or lethargic when compared to the previous end of the position Rp13.475/USD. But at 10:08 pm move to the level of Rp13.524/USD with a range of Rp13.475-Rp13.529/USD.
(rnz)
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