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2025-09-18 16:26:53
[Global Market Update: Norwegian Krone Recovers Slightly as US Dollar Strengthens, Oil and Gold Fall] ⑴ After the Norwegian Central Bank cut interest rates by 25 basis points to 4.0%, the krone narrowed its losses against the euro, now trading at 11.6086. The central bank cited divergent views in its decision-making process and expressed caution about further rate cuts. ⑵ Bank Indonesia will monitor the stability of the US dollar against the Indonesian rupiah before further easing. Supported by intervention measures, the exchange rate remained within the 16,000 to 16,500 range, with the US dollar currently up 0.5% against the Indonesian rupiah at 16,500. ⑶ International oil prices declined, with Brent crude down 0.5% to $67.60 per barrel and WTI down 0.6% to $63.66. Despite a 9.3 million barrel inventory draw, distillate inventories increased by 4 million barrels, weighing on the demand outlook. ⑷ The Bank of England is expected to slow its quantitative tightening to an average annual rate of £75 billion, down from the previous target of £100 billion. The market believes that maintaining the original rate would be surprising. (5) The euro retreated from a four-year high, currently trading at 1.1831. The dollar rebounded after Federal Reserve Chairman Powell signaled caution, prompting some investors to "sell the facts." (6) Gold prices retreated due to a stronger dollar, with futures down 1.1% to $3,678.30 per ounce. While the monthly gain remained close to 9%, investors interpreted the Fed's guidance as less dovish than expected. (7) UK government bond yields remained stable ahead of the interest rate decision, with the 10-year gilt yield at 4.623%. The market generally expected the benchmark rate to remain unchanged at 4%. (8) Eurozone government bond yields fell slightly, with the German 10-year bond yield at 2.673% and the French 10-year bond yield at 3.477%. (9) The British pound weakened, falling 0.2% against the dollar to 1.3595, while the euro rose slightly against the pound to 0.8672. (10) The US dollar index rose 0.4% to 97.251. The Fed's dot plot shows that interest rates may be cut twice more this year, but Powell stressed that future assessments will be made meeting by meeting, and the market lacks confidence in the extent of the easing.
