British pound plunges, bonds fall after tax cut announcement

Sterling hit its lowest level since July 1, 2020. Matt Cardy | Getty Images The controversial British pound fell 3.5% against the dollar on Friday after the new British government announced a radical economic plan to boost growth. Sterling had fallen to $1,084, exacerbating the loss it made after the measures were unveiled in London … Read more

From the Fed to the currency crisis in Europe, here’s what’s behind this sell-off in the financial markets:

Trader on the floor of the NYSE, June 7, 2022. Source: NYSE Stocks fell sharply, bond yields rose and the dollar strengthened Friday as investors heeded the Federal Reserve’s signal that the battle with inflation could lead to much higher interest rates and a recession. The sell-off was global on Friday, in a week in … Read more

Turkey cuts interest rates again as country struggles with inflation

The number of Russian tourists to Europe dropped dramatically during the summer, but rose in several other destinations, including Turkey (here). Onur Dogman | Sopa images | Light rocket | Getty Images Turkey’s central bank surprised markets again with its decision Thursday to cut its key interest rate, despite inflation in the country soaring above … Read more

Swiss central bank raises interest rates as inflationary pressures hit hard

Swiss National Bank (SNB), the central bank of Switzerland. COFFRINI FABRICS | AFP | Getty Images The Swiss National Bank on Thursday raised its benchmark interest rate to 0.5%, a shift that will end an era of negative interest rates in Europe. The 75 basis point hike follows a rise to -0.25% on June 16, … Read more

What to expect at the next Bank of Japan (BOJ) meeting as the yen falls?

The Japanese yen is hovering close to its weakest level since 1998, and authorities have suggested taking action to stem the currency’s decline. Ahead of the Bank of Japan’s rate decision later this week, CNBC is looking at whether Japan’s central bank could move away from its ultra-easy monetary policy as the Federal Reserve maintains … Read more

Euro drops below $0.99 after Russia halts gas supplies to Europe

10 and 5 euro notes. Adrien Fillon | Nurfoto | Getty Images The euro has fallen below $0.99 for the first time in 20 years after Russia said it would shut down its main gas supply pipeline to Europe indefinitely. The euro hovered just below the 0.99 level as European markets opened Monday and traded … Read more

Turkey’s skyrocketing inflation threatens more losses for Gulf banks

General view of Emirates NBD Bank on January 3, 2017 in Dubai, United Arab Emirates. Tom Dulat | Getty Images DUBAI, United Arab Emirates — Banks with exposure to Turkey have suffered losses since the country’s currency began to depreciate sharply in 2018; now lenders in several oil-rich Gulf states will be hit in the … Read more

Turkey shocks markets with interest rate cut close to 80% despite inflation

Turkish President Tayyip Erdogan arrives for a NATO summit in Madrid, Spain, on June 29, 2022. Sweet Nacho | Reuters Turkey’s central bank shocked markets on Thursday with a cut in its policy rate, despite inflation in the country nearing 80%. The country’s currency, the lira, fell 0.9% against the dollar, trading at more than … Read more

Weakness Indian Rupee, Hit New Lows Amid Global Headwinds

Two thousand rupee bills on display with an Indian flag in the background. Manish Rajput | SOPA images | LightRocket via Getty Images The Indian rupee has come under intense selling pressure due to a perfect storm of global headwinds that analysts say will continue to pound the currency in the coming months. In recent … Read more

Euro plunges to 20-year low versus dollar as recession fears mount

A Euro sign is on display in the visitor center of the European Central Bank (ECB) building in Frankfurt, Germany. Alex Kraus | Bloomberg | Getty Images The euro fell to its lowest level in two decades on Tuesday, falling more than 1% for the session to reach $1.0283. It comes as fears of a … Read more