31 January 2019
Question: According to MSN: Money, what is the world’s riskiest currency?
Dovish Fed abandons rate-rise course amid fears over muted global growth – Pg. 1
– The Federal Reserve ditched guidance to investors that suggested further gradual rises in interest rates lie ahead, vowing to be “patient” in determining future changes given muted inflation and slowing global growth
– US stocks and Treasury bonds rallied on the statement, with the yield on rate-sensitive two-year bond falling sharply
– …kept the target range for its key rate unchanged at 2.25 – 2.5%.
– …Fed’s new statement said: “in light of global economic and financial developments and muted inflation pressures, the committee will be patient as it determines what future adjustments to the target range for the federal funds rate may be appropriate to support these outcomes”
China updates foreign investment laws as US trade talks begin – Pg. 2
– The new law…formally banks “forced” technology transfers and other illegal interference by government officials in the operations of foreign-invested enterprises
– …China’s central bank approved a long-standing application by S&P’s to issue ratings for local debt offerings
Ireland central bank head set for ECB chief economist role – Pg. 3
– Philip Lane looks set to secure the job of replacing Peter Praet as the ECB’s chief economist, becoming the first Irish member of the bank’s top-ranking executive board
– Mr Lane, a Harvard-trained economist who heads Ireland’s central bank, was the only candidate nominated by European governments,…
– …eight-year term at the Frankfurt-based central bank
– Ireland is the only founding member of the euro to never have had an official on the six-member ECB executive board, which helps shape monetary policy for the single currency area
Answer: Australian Dollar