Currency markets
were choppy on Tuesday as the dollar hit a 10-week high against
peers and a six-month top versus the yen before retreating after
Japanese officials gave their currency a nudge.
Brazil's Finance Ministry executive secretary Gabriel Galipolo said on Tuesday that asset prices have been improving since the presentation of new fiscal rules, stressing that the market projects lower interest rates in the medium term. Speaking at an event hosted by Brazilian newspapers Valor Economico and O Globo, he also stated that the foreign exchange rate has reached "a new level."
Nigeria's sovereign dollar-denominated bonds rallied on Tuesday after new President Bola Tinubu said at his swearing-in that a costly fuel subsidy would be removed and the central bank should work towards a unified exchange rate.
Currency markets were choppy on Tuesday as the dollar hit a 10-week high against peers and a six-month top versus the yen before Japanese officials gave their currency a nudge, as investors kept a wary eye on global policy makers.
European stocks and the U.S. dollar fell, after climbing to a two-month high, on Tuesday as relief that the U.S. government had averted a possible default gave way to concern that the deal could face a rocky path through Congress.
Turkey's sovereign bond prices rose more than two cents on the dollar on Tuesday as markets waited for President Tayyip Erdogan, the winner of Sunday's presidential election runoff, to decide on a cabinet to run economic policy. Prices of the country's international notes were up across the curve, with longer-term bonds rising the most, Tradeweb data showed.
The yen softened slightly against the dollar on Tuesday after Japan's top finance diplomat Masato Kanda said authorities were closely watching foreign exchange market moves, would "respond appropriately", but were not focussing on particular levels. The dollar was last up 0.12% on the day at 140.61 yen, having traded slightly lower immediately before Kanda's remarks.
* China's yuan weakens ahead of manufacturing data. * Turkey's Erdogan to speak at 1100 GMT. * Lira at fresh record low, Turkey's stocks up. * Nigeria dollar bonds rise.
The U.S. dollar steadied after climbing to a two-month high and European stocks flattened on Tuesday as relief that a possible default by the U.S. government had been averted gave way to concern that the deal could face a rocky path through Congress.
* Yen near six-month low beyond 140 yen to dollar. * Kanda: won't rule out any option, when asked about intervention. * Government to keep in close contact with new BOJ leadership. By Tetsushi Kajimoto.
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