News
Latest News
news bulletin
Breaking Headlines
Israel-Gaza War Updates
Variety and Tech
Sports News
Middle East News
World News
Lebanon News
Press Highlights
Lebanon Economy
News Bulletin Reports
Other News
Breaking Headlines
Israel-Gaza War Updates
Variety and Tech
Sports News
Middle East News
World News
Lebanon News
Press Highlights
Lebanon Economy
News Bulletin Reports
Beirut
27
o
Bekaa
26
o
Keserwan
28
o
Metn
28
o
Mount Lebanon
25
o
North
29
o
South
27
o
Live
Video
Audio
Schedule
shows
العربية
watching now
Nokta Ntaha
SUBSCRIBE
Home
Notification
Live
Video
Audio
shows
Beirut
27
o
Bekaa
26
o
Keserwan
28
o
Metn
28
o
Mount Lebanon
25
o
North
29
o
South
27
o
News
Programs
The News
Breaking Headlines
Israel-Gaza War Updates
Variety and Tech
Sports News
Middle East News
World News
Lebanon News
Press Highlights
Lebanon Economy
News Bulletin Reports
Programs
Series
Movies
Documentaries
Variety
Comedy
Talk Show
News Bulletin
Sports
Breaking News
Latest News
Highlighted News
Most Read
Videos
العربية
Watch the latest programs and the latest developments on your favorite screen
Shows
Join millions of followers
Who We Are
Contact Us
Advertise With Us
Careers
Channel frequencies
Privacy Policy
Terms and Conditions
Dollar pauses, sterling drops ahead of Fed, BoE
World
21-03-2023 | 06:05
High views
Share
Share
4
min
Dollar pauses, sterling drops ahead of Fed, BoE
The dollar steadied and sterling fell on Tuesday as traders reckoned banking stress would keep the Federal Reserve and the Bank of England from hiking rates much further, or at all, later in the week.
Investors remained concerned over the fate of the banking sector after US lender First Republic shares tumbled nearly 50% on Monday on fears it will need a second rescue. But European banks rallied on Tuesday for a second consecutive day eased some of those fears following UBS Group's state-backed takeover of Credit Suisse.
The focus has moved to central banks meetings due this week.
Markets are pricing in a 25% chance that the Fed will stand pat when it announces its monetary policy decision on Wednesday, with a 75% chance of a 25 basis point rate hike, according to the CME FedWatch tool.
"Volatility in rates and the broader asset markets has been extraordinary recently," said John Velis, FX and macro strategist for the Americas at BNY Mellon.
"That has clouded the picture for the March (Fed) meeting and beyond. One consequence has been a substantial repricing … regarding future rate expectations," he said, with the peak seen at 5.5% only a few weeks ago, against about 4.8% now.
The dollar has followed those expectations lower, though general nervousness in financial markets has tempered selling.
The greenback ticked about 0.1% higher to $1.0729 per euro, while the dollar index, which measures the US currency against six peers, flattened at 103.36.
With UK inflation data on Wednesday expected to show some easing and amid the global financial market instability, money markets are now pricing in a 50% chance of no interest rate hike by the BoE on Thursday and the same chance of a 25 basis-point increase. Sterling fell 0.35% to $1.2234.
Data showed that Britain recorded a budget deficit of 16.68 billion pounds ($20.4 billion) in February, much higher than expected by a Reuters poll of economists.
The Norwegian crown rose 0.35% to 10.6120 per dollar, after falling last week to its lowest level since early October. Norway's central bank is expected to raise its benchmark interest rate by 25 bps to 3% this week to curb inflation and prop up a weakening currency, according to a Reuters poll.
On Tuesday, minutes showing Australia's central bank had agreed on March 7 to consider the case for a rate pause at its April policy meeting, even before the recent bout of volatility weighed on the Aussie which dropped 0.55% to $0.6681.
Sentiment remained fragile, as investors grapple with bank stress that has mushroomed from weakness in regional US banks to the humbling of a global lender in a matter of days.
"Markets remain nervous, but the rapidity of policymakers' response to the evolving banking sector risks is heartening," said Alvin Tan, head of Asia FX strategy at RBC Capital Markets.
On Sunday the Federal Reserve, in coordination with central banks elsewhere, announced it would offer daily currency swaps to ensure there would be plenty of US dollars to go around.
A top European Union securities regulator said on Tuesday that reforms to tackle vulnerabilities in money market funds were urgently needed for the sector to cope better with economic shocks.
The approval of International Monetary Fund financing for Sri Lanka sent the beaten-down Sri Lankan rupee about 5% higher against the dollar.
The dollar rose 0.66% against the yen to 132.18 after recording on Friday its biggest daily fall against the Japanese currency in more than two months.
Reuters
Dollar
Fed
BoE
USD
Trade
Federal Reserve
US
Bank
Subscribe to our VOD
SUBSCRIBE
Our visitors readings
d-none hideMe
0
Lebanon News
2025-04-03
Israeli strike on car in Alma al-Shaab injures civilian: Health Ministry
Lebanon News
2025-04-03
Israeli strike on car in Alma al-Shaab injures civilian: Health Ministry
0
Lebanon News
2025-07-05
US Envoy Tom Barrack hails 'historic moment' for Lebanon, urges unity and reform
Lebanon News
2025-07-05
US Envoy Tom Barrack hails 'historic moment' for Lebanon, urges unity and reform
0
News Bulletin Reports
2025-07-14
From Shebaa Farms to Mount Hermon: Israel resets its northern war map
News Bulletin Reports
2025-07-14
From Shebaa Farms to Mount Hermon: Israel resets its northern war map
0
World News
2025-06-24
UN condemns 'weaponization of food for civilians' in Gaza
World News
2025-06-24
UN condemns 'weaponization of food for civilians' in Gaza
Videos
d-none hideMe
0
Lebanon News
08:59
Pregnant journalist Petra Abou Haidar attacked in road rage assault
Lebanon News
08:59
Pregnant journalist Petra Abou Haidar attacked in road rage assault
0
Lebanon News
2025-07-01
Massive fire erupts at unregulated dumpsite in Bchannine, Zgharta district
Lebanon News
2025-07-01
Massive fire erupts at unregulated dumpsite in Bchannine, Zgharta district
0
Lebanon News
2025-06-10
Clash between Lebanese Army and residents of Deir Qanoun Al Nahr results in injuries (Video)
Lebanon News
2025-06-10
Clash between Lebanese Army and residents of Deir Qanoun Al Nahr results in injuries (Video)
0
Lebanon News
2025-06-04
Mexico dedicates garden around Lebanese Emigrant Statue in Beirut to mark 80 years of diplomatic ties
Lebanon News
2025-06-04
Mexico dedicates garden around Lebanese Emigrant Statue in Beirut to mark 80 years of diplomatic ties
0
Lebanon News
2025-05-19
President Aoun to seek Egyptian support for Lebanese Army in detecting explosives and tunnels
Lebanon News
2025-05-19
President Aoun to seek Egyptian support for Lebanese Army in detecting explosives and tunnels
0
Lebanon News
2025-05-15
LBCI Exclusive: US steps up pressure on Hezbollah, Morgan Ortagus details sanctions and vision for Lebanon's future
Lebanon News
2025-05-15
LBCI Exclusive: US steps up pressure on Hezbollah, Morgan Ortagus details sanctions and vision for Lebanon's future
0
Lebanon News
2025-05-11
Kuwait rolls out official welcome for Lebanon's President Aoun – video
Lebanon News
2025-05-11
Kuwait rolls out official welcome for Lebanon's President Aoun – video
0
Lebanon News
2025-05-11
Security incidents temporarily disrupt voting in several Akkar and Minieh-Danniyeh centers
Lebanon News
2025-05-11
Security incidents temporarily disrupt voting in several Akkar and Minieh-Danniyeh centers
0
News Bulletin Reports
2025-05-09
EU ambassador says 'we are not just donors, but genuine partners to Lebanon': Insights from exclusive LBCI interview
News Bulletin Reports
2025-05-09
EU ambassador says 'we are not just donors, but genuine partners to Lebanon': Insights from exclusive LBCI interview
Most read
d-none hideMe
24 hours
7 days
Month
1
Lebanon News
08:59
Pregnant journalist Petra Abou Haidar attacked in road rage assault
Lebanon News
08:59
Pregnant journalist Petra Abou Haidar attacked in road rage assault
2
Lebanon News
08:53
Israeli airstrikes kill 12 in Lebanon's Bekaa, including Syrian refugees
Lebanon News
08:53
Israeli airstrikes kill 12 in Lebanon's Bekaa, including Syrian refugees
3
Lebanon Economy
07:05
Lebanon's central bank bans interactions with Hezbollah's Al-Qard Al-Hassan: Circular
Lebanon Economy
07:05
Lebanon's central bank bans interactions with Hezbollah's Al-Qard Al-Hassan: Circular
4
Lebanon News
07:15
Lebanese Army arrests 144 Syrians for illegal entry, detains multiple Lebanese suspects in raids
Lebanon News
07:15
Lebanese Army arrests 144 Syrians for illegal entry, detains multiple Lebanese suspects in raids
5
Lebanon News
03:42
Airstrikes hit Bodai as Israel targets alleged Hezbollah positions in Bekaa
Lebanon News
03:42
Airstrikes hit Bodai as Israel targets alleged Hezbollah positions in Bekaa
6
Lebanon News
04:44
Israeli defense minister says strikes under way in Lebanon are 'clear message' to Hezbollah
Lebanon News
04:44
Israeli defense minister says strikes under way in Lebanon are 'clear message' to Hezbollah
7
Lebanon News
10:10
Lebanon's Press Club condemns assault on journalist Petra Abou Haidar, calls for accountability
Lebanon News
10:10
Lebanon's Press Club condemns assault on journalist Petra Abou Haidar, calls for accountability
8
Lebanon News
03:32
Lebanese committee to meet at Presidential Palace after receiving US response to proposal
Lebanon News
03:32
Lebanese committee to meet at Presidential Palace after receiving US response to proposal
Download now the LBCI mobile app
To see the latest news, the latest daily programs in Lebanon and the world
Google Play
App Store
We use
cookies
We use
cookies
to make
your experience on this
website better.
Accept
Learn More