Foreign Exchange Insights and Next Week
Dollar and Relative Inflation
February 15, 2018
One theory of long-term exchange rate determination known as Purchasing Power Parity stipulates that currency movements have a tendency eventually to offset variations in relative inflation rates, such that the amount of currency A needed to purchase a bundle of trade-exposed goods in country A when converted into currency B will be just enough to […] More
Central Bank Watch
Bank Indonesia Keeps Policy Stance on Hold
February 15, 2018
The 7-day reverse repo rate, the deposit rate and the overnight lending facility rate were retained at 4.25%, 3.5%, and 5.0%, respectively, at the February monthly meeting of Bank Indonesia’s Board of Governors. A statement was released that reiterates the main points of January’s statement. Inflation lies with and is expected to stay in the […] More
New Overnight Developments Abroad - Daily Update
Stocks Recover Further, While Bond Prices and Dollar Move Lower
February 15, 2018
Japan’s Nikkei jumped 1.5%. A number of other Asian markets (China, Taiwan, Hong Kong, and Singapore did not open because of the Lunar New Year holiday. Share prices in Europe are so far up today by 1.5% in France and Greece, 1.0% in Italy, 0.8% in Spain, 0.7% in Germany and 0.6% in the U.K.. […] More
