Chinese Yuan

Emerging Market Currencies Is Where the Action Lies

April 16, 2014

The unremarkable changes in dollar values against other advanced economy currencies has been a frequent theme lately of the weekly currency market essay.  Regrettably, that stability has continued in April, where month-to-date dollar declines amount so far to 1.2% against the Aussie dollar, 1.0% versus the yen, 0.8% relative to sterling, 0.3% vis-a-vis the loonie […] More

Ton of Released Data, Some with Unexpected Results

February 28, 2014

The yuan suffered its greatest single-day drop in almost seven years and hit a 10-month low against the dollar. Yesterday’s testimony by Fed Chairwoman Yellen was somewhat more dovish than anticipated.  The dollar is down 0.8% against the Swiss franc and 0.6% weaker versus the euro after touching a 2014 low of $1.3814 earlier in […] More

Sharp Decline in Chinese Yuan to a Four-Month Low

February 25, 2014

The yuan weakened 0.4% against the dollar, arousing some suspicion that Beijing officials may be orchestrating the slide as a protest against rising strains with the United States over a variety of geopolitical matters.  Share prices in China continued their retreat, falling by a further 2.6%. Bank of England Monetary Policy Committee member Ian McCafferty […] More

Canadian Dollar, Australian Dollar and Chinese Yuan Are Weaker

February 21, 2014

The loonie has traded 0.6% lower against its U.S. counterpart ahead of the release of Canadian retail sales later today, which probably did poorly.  Canadian consumer prices also arrive. The yuan, off 0.2% today, will post its greatest weekly slide in a few years.  Chinese stocks fell 1.0% on concerns about the growth outlook in […] More

Statement of G20 Finance Ministers and Central Bank Chiefs Comments Favorably on Japan

April 21, 2013

On the sidelines of the IMF/World Bank meetings in Washington, financial leaders of the Group of Twenty met April 18-19 and released a statement that gives Japan not even an amber light but rather a green light to pursue its new policy program even if such depresses the yen further.  Using unmodified language, the statement […] More

ECB Comment Weighs on Euro and Stocks

October 13, 2011

Investor attention was drawn to the ECB Bulletin where it is warned that forced euro bondholder write-offs could hurt the euro’s reputation.  The euro fell as much as 1.7% against the yen and 0.9% relative to the dollar. Stocks in Europe lost 1.4% in Germany, 1.1% in France, and 0.8% in Great Britain. Compared to […] More

Yuan Rules and the 2010 U.S. Election

November 18, 2009

A shift away from the yuan’s fixed peg at 6.83 per dollar had been a top goal of Team Obama’s Asian trip and is now one the week’s largest embarrassments.  Chinese officials rebuffed the request more forcefully than necessary and turned the object of complaint around to Washington’s neglectful dollar policy.  This public posturing backs […] More

Concern #2: China's Predatory Currency Policy

November 10, 2009

Mercantilism is alive and well in China, now the world’s third largest economy although well down the leader board in per capita terms.  Chinese monthly economic figures for exports, industrial production, and investment will be reported tomorrow.  A massive three-dimensional policy stimulus from low interest rates, deficit fiscal spending and intervention to maintain a highly […] More

Louder Complaints About an Undervalued Chinese Yuan and Some History

October 26, 2009

The U.S. Treasury semi-annual report on International Economic and Exchange Rate Policies, released earlier this month, bluntly called the Chinese yuan “still undervalued” and said it had depreciated 7% in trade-weighted terms since February despite brisker Chinese productivity and GDP growth, a $186 billion increase in Chinese reserves in the first half of 2009, and […] More

U.S. Trade and China

June 10, 2009

The $29.16 billion deficit in April generated trade in goods and services was close to expectations and compares with a first-quarter average gap of $30.4 billion but a mean deficit of $61.2 billion in the first four months of 2008. The U.S. merchandise trade deficit on a census basis amounted to $144.0 billion in January-April, […] More