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US Dollar Rises Early Friday Ahead of Industrial Production, Bowman Appearance

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The US dollar rose against its major trading partners early Friday, except for a decline versus the pound, before the release of industrial production data for August at 9:15 am ET and an appearance by Federal Reserve Vice Chair for Supervision Michelle Bowman at 9:30 am ET.

State unemployment and leading indicators data for August are due to be released at 10:00 am ET, followed by an update to the St. Louis Fed's GDP nowcast estimate for Q3 around midday and an appearance by Kansas City Fed President Jeffrey Schmid at 11:45 am ET.

A quick summary of foreign exchange activity heading into Friday:

EUR/USD fell to 1.1469 from 1.1475 at the Thursday US close and 1.1472 at the same time Thursday morning. The Eurozone current account surplus narrowed in July while construction output was flat in the same month, data released earlier Friday showed. The next European Central Bank meeting is scheduled for Oct. 29.

GBP/USD rose to 1.3359 from 1.3354 at the Thursday US close but was below a level of 1.3366 at the same time Thursday morning. UK retail sales rebounded in August, according to data released earlier Friday. The next Bank of England meeting is scheduled for Nov. 5.

USD/JPY rose to 157.7721 from 156.0212 at the Thursday US close and 155.8071 at the same time Thursday morning. The Bank of Japan raised its target rate by 25 basis points overnight, citing rising inflation, while the pace of year-over-year Japanese consumer price growth in August was in line with the previous month. The next Bank of Japan meeting is scheduled for Oct. 30.

USD/CAD rose to 1.4008 from 1.3990 at the Thursday US close and 1.3996 at the same time Thursday morning. There are no Canadian data on Friday's schedule. The next Bank of Canada meeting is scheduled for Oct. 28.

What else is happening in International?

International

Bank of Japan Hikes Interest Rate to 31-Year High

The Bank of Japan raised its benchmark policy rate to a 31-year high of 1.25% from 1.0% at the conclusion of its monetary policy meeting on Friday.The decision, approved by a 7-2 vote, was in line with market expectations and marked the second rate hike for the central bank this year.The BOJ last raised its benchmark policy rate to 1.0% from 0.75% in June.The central bank said Japan's economy is recovering moderately, although some weakness remains due geopolitical uncertainties acting as risks to the outlook.The economy is expected to continue growing moderately, driven by rising global AI-related demand and various government measures, the BOJ said.Rising crude oil prices and the depreciation of the yen have pushed medium- to long-term inflation expectations higher, bringing the underlying rate of consumer price inflation closer to the BOJ's 2% target.

Nikkei 225
International

Korea's Auto Exports Plunge in August on Fewer Working Days, Strikes

Korea's automobile exports fell nearly 30% year over year to $3.85 billion in August, hit by fewer working days from the summer holiday shift and strike-related production disruptions, according to the Ministry of Trade, Industry and Resources (MOTIR).Declines were recorded across all major markets, with North America down over 28%, the EU falling nearly 17%, Asia tumbling 42%, and the Middle East slid 24%, while export volume dropped 27% to 146,000 units.Domestic sales and production fell 21% and 36%, respectively, to 110,000 and 206,000 units, though eco-friendly vehicle sales reached 69,000 units, or 63% of the domestic market.With wage negotiations now concluded at all major automakers, the ministry expects the shortfall to be made up and exports and production to gradually recover.

KOSPI
International

South Korea Extends Fuel Tax Cuts Through November to Ease Public Burden

South Korea will extend its fuel tax cut scheme by another two months through November to ease price burdens on the public amid protracted tensions in the Middle East, according to the Ministry of Finance and Economy statement on Thursday.The ministry said the decision was made during an economy-related ministers' meeting chaired by Finance Minister Koo Yun-cheol, taking into careful consideration the recent international oil price situation and the burden on the public.The current reductions, including 15% for gasoline and 25% for diesel and butane, were scheduled to end in September, and the 10th oil peak price to be applied will be announced at 6 p.m. on Thursday.During the Chuseok holiday period from Sept. 24 to 27, highway gas station fuel prices will be lowered by 100 won per litre compared to Sept. 17, with electric vehicle charging fees discounted during daytime hours.

KOSPI