September 24, 2021

Major Currencies Stop Rising, What Happened?

 Major currencies stopped rising as investors are now wondering about the issue of Evergrande remaining silent on interest payments on ‘offshore bonds’ or also known as ‘international bonds’.

Earlier, Evergrande had announced that it would make interest payments on ‘onshore bonds’ (domestic), and this has relieved investors of the crisis that befell the company.

However, a number of offshore bond holders said they had not received the $ 83 million interest payment which ended on Thursday and $ 43.5 million next week. Both have a period of 30 days before being considered ‘default’.

This made major currency trading stop the gains derived from this sentiment, particularly the risk -sensitive currencies of the Aussie and New Zealand dollars.

Meanwhile, the greenback rose slightly with the dollar index trading stable at 93.14 against its main competitor.

This change in movement may also be due to profit -taking by market players ahead of the close of weekend trading.

The pound traded steady around 1.3710 against the US dollar, supported by positive statements from the bank of England that boosted investors ’expectations for an earlier -than -expected interest rate hike.

The euro was little changed, still holding on to yesterday's gains from the depreciation of the US dollar, trading around 1.1730 against the USD.