A Dublin headquartered technology company, Regulert, has launched a solution for banks and card issuers, providing a seamless and simple path for compliance with new rules on transparent FX charges (Regulation (EU) 2019/518) .
From April 2020, the European Union requires financial card issuers and banks to inform customers of FX rates whenever cards are transacted in Non-Euro EU countries. The new rules aim to create a transparent market for FX services, so that consumers can make an informed choice.
Issuers must display the percentage difference between what they charge for the transaction and the European Central Bank (ECB) rate for that currency conversion on their websites and mobile apps. This must be in (or near) real-time and available for the customer to access.
One year on from this implementation (by April 2021) issuers will again be required to substantially up their game, providing real-time (or as close to real time as possible) an electronic notification to the card holder via mobile push notification, banking apps, SMS or email the amount they will be charged in their home currency and the percentage difference to the current ECB rate.
For banks and card issuers struggling to meet these pressing deadlines against a back-drop of many other time-consuming new rules and regulations, Regulert has developed unique, instantly deployable solution for banks and card issuers to immediately meet the requirements under Regulation 2019/518.
Regulert Director, Enda Murphy says: “While the current regulation applies to a limited number of territories in the EU and to EU-based banks, this is going to be the tip of the iceberg in terms of transparency across the globe for FX charges on card transactions.
“Banks and card issuers may feel overwhelmed given the many other changes still pre-occupying their time and resources, but Regulert can ease their pain by providing an easy, instant and compliant solution.
“What’s more this latest EU requirement has a significant silver lining. Greater transparency on FX charges will offer issuing banks great opportunities to differentiate their products in this space and win customers for their competitively priced travel cards, Dynamic Currency Conversion and other offerings.
It will also encourage greater use of such services, by reassuring customers who may have previously fallen foul of high-rate services designed to catch travellers unawares.
“Those providers that act first and win trust in this sector will be able to gain a significant competitive advantage.”
Asian stocks edge higher, Aussie in demand on recovery signs
By Stanley White and Koh Gui Qing
TOKYO/NEW YORK (Reuters) – Asian shares edged higher on Wednesday as investors shrugged off concerns that stocks may have rallied too far too fast in the past year, and focused instead on optimism that more imminent U.S. stimulus will energise the global economic recovery.
MSCI’s broadest index of Asia-Pacific shares outside Japan was up 0.44%. Australian shares were up 0.62%, while Japan’s Nikkei stock index rose only 0.03%. Shares in China gained 0.63%.
E-mini S&P futures were up 0.23%.
Wall Street had retreated overnight after beginning March with a bang, with the S&P 500 staging its best one-day rally in nine months on Monday. [.N]
But some analysts warned that worries that stock prices may be frothy, a fear echoed by a top Chinese regulatory official on Tuesday, may make it harder for equity markets to hang on to gains. Fears that last week’s sell-off in U.S. Treasuries, which rattled stock markets, could resume may also put a lid on stock prices, they said.
“While markets have stabilised…, the tone remains tenuous as investors continue to fear a further sell-off in rates,” analysts at TD Securities said in a note.
The cautious mood weighed on the U.S. dollar, which has benefited in recent days from investor hopes that the United States will enjoy a faster economic recovery, and that the U.S. central bank will be more tolerant of higher bond yields. [USD/]
The U.S. dollar index stood at 90.787, nursing a 0.2% loss from the previous session.
The Australian dollar shined yet again, rising to $0.7828 after stronger-than-expected economic growth in the fourth quarter fuelled hopes for a V-shaped recovery from the coronavirus pandemic.
Benchmark U.S. government bond yields dipped again for the third consecutive day as investors paused a recent sell-off ahead of a slew of U.S. economic data that will be released later this week. The yield on 10-year Treasury notes stood at 1.4085%, down from last week’s high of 1.614%. [US/]
The U.S. stock market was roiled last week when benchmark yields spiked to a one-year high on investor bets that a strong U.S. economic rebound amid ultra-loose monetary conditions could fuel inflation.
U.S. Federal Reserve officials have said that inflation concerns are premature, however, and warned that rising yields could tighten financial conditions and constrain an economic recovery.
MSCI’s broadest index of global stocks edged up by 0.05%.
Oil prices were mixed hitting a two-week low overnight on expectations that OPEC+ producers will ease supply curbs at their meeting later this week as economies start to recover from the coronavirus crisis.
U.S. West Texas Intermediate crude was little changed at $59.74 a barrel, while Brent futures rose 0.22% to $62.84 a barrel. [O/R]
Cryptocurrency bitcoin erased early losses and rose 0.62% to $48,814. The digital asset is up 69% so far this year as it gains more acceptance in mainstream financial circles.
(Reporting by Stanley White and Koh Gui Qing; Editing by Christopher Cushing)
Dollar on defensive as risk sentiment recovers amid retreat in U.S. yields; Aussie gains
By Kevin Buckland
TOKYO (Reuters) – The safe-haven U.S. dollar remained broadly weaker on Wednesday as Treasury yields continued to retreat, restoring some calm to global markets and reigniting demand for riskier assets.
Commodity-linked currencies including the Australian dollar and the Norwegian krone held on to sizeable two-day advances.
The lower U.S. yields also sapped some of the dollar’s allure among fellow low-yielding currencies, with the yen and Swiss franc bouncing off multi-month lows.
Bonds have been at the centre of a storm in financial markets in recent weeks, following a dramatic jump in yields globally – but led by Treasuries – in defiance of central bankers’ insistence on patience in normalizing monetary policy as economies recover from the COVID-19 pandemic. Global stocks were knocked from near record highs, and commodities prices wobbled.
Fiscal stimulus has fueled market expectations for a rapid recovery, with President Joe Biden close to passing a $1.9 trillion spending package.
An index of the dollar against six of its major peers was little changed early in the Asian session Wednesday, after dropping back from a nearly one-month high overnight.
The Aussie rose 0.1% to $0.7824, following gains of about 0.7% the previous two days. The currency got additional support from gross domestic product data that topped analyst forecasts.
The krone traded mostly flat after advancing about 1% in each of the past two sessions.
“Risk sentiment dynamics are the key driver of currencies in general right now,” said Shinichiro Kadota, senior currency strategist at Barclays Capital in Tokyo.
“Equity market reaction will be one of the key determinants of the impact of this move in global rates on FX markets.” The lull in volatility could prove fleeting if an improving U.S. economy reignites bond selling, with closely watched monthly payroll figures are due on Friday.
U.S. Federal Reserve Governor Lael Brainard stuck to recent dovish rhetoric overnight, saying there is still a lot of ground to cover on jobs and inflation. But she also said she is “paying close attention” to bond market developments, where “the speed of the moves caught my eye.”
Earlier Tuesday, the Reserve Bank of Australia had recommitted to keeping interest rates at historic lows.
Meanwhile, European Central Bank board member Fabio Panetta said the bloc’s monetary authority should expand bond purchases or even increase the quota earmarked for them if needed to keep yields down. The euro was little changed at $1.20910 after rising more than 0.3% in the previous session, when it rebounded from an almost one-month low below $1.20.
The dollar added 0.1% to 106.810 yen, another safe-haven currency, consolidating after retreating from the cusp of 107 overnight, a level unseen since August.
(Reporting by Kevin Buckland; editing by Richard Pullin)
Dollar dips, Aussie gains on improving risk sentiment
By Karen Brettell
NEW YORK (Reuters) – The dollar dipped on Tuesday and riskier currencies including the Australian dollar gained as U.S. stocks were stable, reflecting improving risk appetite.
The greenback has been a beneficiary from recent volatility in stocks, which were roiled last week by a dramatic jump in U.S. government debt yields.
Treasuries have stabilized this week, with benchmark yields holding below last week’s highs, helping to restore some market calm.
On Tuesday, “Wall Street largely retained Monday’s sharp gains,” which helped the U.S. currency “ease lower through the N.Y. session,” Ronald Simpson, managing director, global currency analysis at Action Economics, said in a report.
The dollar index fell 0.31% to 90.731, after earlier reaching a three-week high of 91.396.
The euro gained 0.36% to $1.2092.
Rising yields came as participants worried that an economic recovery from the impact of the COVID-19 pandemic, combined with fiscal stimulus, will cause a jump in inflation and potentially faster tightening from the Federal Reserve.
The volatility also boosted the greenback as investors unwound short positions in the currency.
â€œIf you do see volatility, the natural inclination is to take risk off the table; in this case it just basically means getting out of existing positions, and the dollar shorts are extremely elevated at this pointâ€ said Bipan Rai, North American head of FX strategy at CIBC Capital Markets in Toronto.
Short U.S. dollar positions were $29.33 billion in the week ended Feb. 23, according to data from the Commodity Futures Trading Commission.
Riskier currencies including the Australian dollar continued to rebound from last weekâ€™s sell-off, with the Aussie also gaining after the Reserve Bank of Australia recommitted to keeping interest rates at historic lows.
The currency was last up 0.77% at $0.7831, though it remains below the three-year high of $0.8007 reached on Thursday.
Karen Jones, a technical analyst at Commerzbank, said that the Aussie and other risky currencies including the Norwegian krone appeared to be reversing from interim tops, which will likely be positive for the U.S. dollar near-term.
The â€œU.S. dollar bear trend is probably overâ€ for now, Jones said in a report.
The greenback was last down 1.09% at 8.466 krone, but is holding above the 8.313 krone per dollar level reached last week, the weakest for the dollar in more than two years.
Safe-haven currencies including the Swiss franc and Japanese yen, meanwhile, ended slightly stronger, reversing earlier weakness.
The Swiss franc earlier hit its lowest since November 2020 against the dollar at 0.9193 while the yen was the weakest since August at 106.95.
Bitcoin fell to a session low after Gary Gensler, President Joe Biden’s nominee to chair the U.S. Securities and Exchange Commission, said that cryptocurrency has raised new investor protection concerns.
It was last down 4.11% at $47,609.
Citi said in a report that the popular cryptocurrency was at a “tipping point” and could become the preferred currency for international trade or face a “speculative implosion.”
(Additional reporting by Elizabeth Howcroft in London; Editing by Bernadette Baum and Jonathan Oatis)
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