USD eased from its one-month high, CNH continues to slide; global shipping costs skyrocket

USD eased slightly from its one-month high as investors waiting cautiously for updates from the Fed’s meeting. Moreover, solvency uncertainty also surrounds the global financial market. Beijing so far showed no sign that it would intervene to calm down the domino effects in markets outside China. CNH has weakened to 6.4657 per dollar, further down from Monday. Among USD’s other major counterparts, JPY strengthened to 109.56 per dollar, and GBPUSD also strengthened to 1.3656.

The US current account deficit increased to the 14-year high as demand on imports grew stronger. International shipping costs have gone up almost out of control, adding costs to companies and eventually to consumers. The composite cost of shipping a 40-foot container on eight major East-West routes hit $9,613 in the week to August 19, up 360% from a year ago. With Thanksgiving and Christmas being around the corner, the skyrocketing shipping costs might disrupt holiday shopping.