December 5, 2022
US Dollar Erases More Than Half of This Year’s Gains on Fed Bets
The US dollar has erased more than half of this year’s gains amid growing expectations the Federal Reserve will temper its aggressive rate hikes, and as optimism grows over China’s reopening plans.
The Bloomberg Dollar Spot Index has pared its 2022 advance to about 7%, after gaining as much as 16% earlier, as slower-than-expected gains in consumer prices and comments by Fed Chair Jerome Powell stoked speculation the US central bank will slow its pace of rate hikes next week.
UK Two-Year Mortgage Rate Falls Below 6% in Fresh Sign of Relief for Housing Market
The cost of a two-year fixed-rate mortgage has fallen below 6% for the first time in almost nine weeks, as the UK’s home loans crunch eases off.
The average two-year fixed-rate mortgage fell to 5.99% Monday, according to Moneyfacts Group Plc. That’s the first time it has dropped below the threshold since Oct. 4 when key home loan rates were spiraling in the aftermath of then-Prime Minister Liz Truss’s mini-budget. The average five-year fixed-rate deal also fell to 5.78%, after dropping below 6% almost a fortnight ago.
India Trade Ministry Seeks to Cut Gold Tariff to Curb Smuggling
India’s trade ministry is discussing a reduction in import taxes on gold to rein in illegal shipments, according to people familiar with the matter.
The world’s second-largest consumer of the precious metal, almost all of which is purchased from abroad, has asked the Finance Ministry to consider reducing the tariff to about 10% from 12.5%, two of the people said, asking not to be identified as the deliberations are private. It’s as yet unclear if the recommendation will be accepted and a decision could be announced at or before the budget presentation due early next year, they added.
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