FT News Briefing Yen sinks as dollar rises to 20-year high
Apr 29, 2022
The U.S. dollar has hit a 20-year high, while the economy unexpectedly contracted—marking its first decline since mid-2020. Amazon is grappling with sluggish revenue growth as high costs weigh down earnings. Additionally, Twitter admits to overstating its audience figures for three years, raising questions about credibility under new ownership. The podcast also discusses how U.S. interest rate hikes impact currency strength compared to Japan's low rate strategy amid global inflation.
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Amazon's Slowest Growth
- Amazon reported its slowest revenue growth ever in Q1 2023, missing Wall Street estimates by $4 billion.
- This was due to decreased online sales, causing a 10% drop in after-hours trading.
US Economy Shrinks
- The US economy shrank by 1.5% in Q1 2023, the first contraction since mid-2020.
- High imports, driven by strong consumer spending, widened the trade deficit, contributing to the decline.
Dollar Surges, Yen Sinks
- The US dollar surged to a 20-year high due to traders anticipating the Fed's continued rate hikes.
- The Japanese yen, conversely, fell to a 20-year low as the Bank of Japan maintained its low-rate policy.