US dollar gains as new Treasury Secretary expected to ease trade tariffs, boosting markets.
The CFNAI for November 2021 showed a decline to -0.40, its worst reading since January. Scott Bessent's appointment as U.S. Treasury Secretary, expected to ease trade tariffs, led to a US dollar recovery and a rally in bonds and stocks. USD/JPY rose above 154.00, driven by the risk-on environment and uncertainty over the Bank of Japan's rate hikes. The Japanese yen remains under pressure due to low-yields and US Treasury yields. The PBOC conducted a net drain of 550 billion yuan through MLF, maintaining the 2% interest rate, indicating stable liquidity management.
November 24, 2024
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