Markets & Finance News

Turkish President Tayyip Erdogan reaffirmed his strong opposition to high interest rates on Friday, a day after the central bank said it would maintain a tight monetary policy for "an extended period".

Global equity benchmarks slipped from record highs and oil prices dipped Friday as weaker economic data in Japan and Europe and concerns that newly inaugurated U.S. President Joe Biden's stimulus plan may face Republican opposition curbed a weeklong rally in risk assets.

The dollar drifted higher on Friday after three straight days of losses, and riskier currencies fell, as bleak non-U.S. economic data gave global equity markets reason to pause after another week of record highs. As a safe haven, the U.S. currency tends to rise in times of financial and economic stress that result in lower risk appetite. U.S. stocks and Treasury yields were lower as well, suggesting a generally somber mood in financial markets. The dollar did pare gains and other riskier currencies cut losses after upbeat U.S. economic data - a rise in factory activity to its highest in more than 13 years in January and an unexpected 0.7% gain rise in existing home sales. The greenback had fallen against a basket of currencies for the past three sessions as market optimism about new U.S. President Joe Biden's fiscal stimulus plans prompted traders to seek riskier assets, producing gains in riskier currencies such as the New Zealand and Australian dollar. But that trend paused on Friday as market sentiment pulled back. Global shares slipped off record highs as the U.S. dollar steadied, up 0.2% on the day at 90.265. The dollar index though was still on track for its biggest weekly loss since mid-December. "Optimism gave way to renewed worry Friday as (coronavirus) infection rates rose in China and data across Europe offered evidence of the containment measures undermining recoveries," said Joe Manimbo, senior market analyst at Western Union Business Solutions in Washington. Gloomy economic data did little to brighten the mood, as UK data showed British retailers struggled to recover in December. Economic activity in the euro zone shrank markedly in January as stringent lockdowns to contain the coronavirus pandemic hit the bloc's dominant service industry hard. In late morning trading, the dollar rose 0.3% against the yen to 103.835. Data from Japan overnight showed factory activity slipped into contraction in January and the services sector was more pessimistic as emergency measures to combat a COVID-19 resurgence dampened sentiment. The Australian dollar fell after disappointing retail sales data, but was still set for a weekly rise. It was last down 0.6% at US$0.7720. The New Zealand dollar was down around 0.6% at US$0.7179 versus the U.S. dollar. The euro was little changed at $1.2172. The single currency rose on Thursday after the European Central Bank's policy rate announcement, with the ECB saying it might not need to use its full asset-purchase envelope. ECB President Christine Lagarde also said the bank was "very carefully" monitoring the euro exchange rate, which in 2020 soared nearly 9% against the dollar. The Norwegian crown was hurt by lower commodity prices, slumping 1.2% against the dollar to 8.4855 . ======================================================== Currency bid prices at 11:08AM (1608 GMT) Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid Previous Change Session Dollar index 90.1700 90.1080 +0.08% +0.00% +90.3070 +90.0390 Euro/Dollar $1.2177 $1.2169 +0.05% -0.35% +$1.2190 +$1.2152 Dollar/Yen 103.7600 103.5100 +0.29% +0.50% +103.8800 +103.5100 Euro/Yen 126.33 125.91 +0.33% -0.46% +126.3900 +125.9000 Dollar/Swiss 0.8851 0.8851 +0.01% +0.06% +0.8866 +0.8840 Sterling/Dollar $1.3676 $1.3736 -0.43% +0.11% +$1.3735 +$1.3636 Dollar/Canadian 1.2706 1.2638 +0.54% -0.22% +1.2720 +1.2635 Aussie/Dollar $0.7724 $0.7765 -0.52% +0.41% +$0.7769 +$0.7702 Euro/Swiss 1.0778 1.0767 +0.10% -0.27% +1.0779 +1.0764 Euro/Sterling 0.8902 0.8857 +0.51% -0.39% +0.8918 +0.8858 NZ $0.7184 $0.7220 -0.50% +0.04% +$0.7224 +$0.7167 Dollar/Dollar Dollar/Norway 8.4805 8.4050 +1.16% -0.98% +8.5050 +8.4130 Euro/Norway 10.3278 10.2280 +0.98% -1.33% +10.3510 +10.2280 Dollar/Sweden 8.2870 8.2691 +0.29% +1.11% +8.3020 +8.2643 Euro/Sweden 10.0920 10.0624 +0.29% +0.15% +10.0985 +10.0617 (Reporting by Gertrude Chavez-Dreyfuss; Additional reporting by Elizabeth Howcroft in London; Editing by Mark Heinrich)

Global equity benchmarks slipped from record highs and oil prices dipped Friday as weaker economic data in Japan and Europe and concerns that newly-inaugurated U.S. President Joe Biden's stimulus plan may face Republican opposition curbed a weeklong rally in risk assets.

* Euro zone business activity shrank in January, survey shows

* Graphic: World FX rates https://tmsnrt.rs/2RBWI5E (Updates throughout, adds comment)

Sri Lankan shares closed at a record high on Friday, helped by gains in financial and consumer staples stocks, and as investors cheered the country's drug regulator giving emergency use approval to AstraZeneca's COVID-19 vaccine.

A global chip shortage is choking the production of machines used to "mine" bitcoin, a sector dominated by China, sending prices of the computer equipment soaring as a surge in the cryptocurrency drives demand.

* Findings of review will be package of steps - ex-BOJ official

Emerging market central banks revisited interest rate cuts in December, extending an easing cycle that started in 2019 and had exceeded the cuts during the 2008 financial crisis and the 2010 euro crisis.