yuan
Currency Management Norms Under Threat
May 23, 2016
A statement released April 15 by G20 finance ministers and central bank governors reaffirmed a position against currency manipulation that represents a coordinated stance that’s been in place already for a long time: Excess volatility and disorderly movements in exchange rates can have adverse implications for economic and financial stability. We will consult closely on […] More
A Fearful Start to the New Year
January 4, 2016
China’s stock market was halted automatically after a 7% plunge. The yuan fell 0.7% and is 5.0% weaker against the dollar than its opening level of 2014. China’s manufacturing purchasing managers index dropped 0.4 points to 48.2, a three-month low and fifth consecutive sub-50 reading in a row. Such scores indicate a contraction of factory-sector […] More
Dollar Paused in Troubling Times
April 22, 2015
In spite of disappointing U.S. growth for a second straight quarter, dollar demand sizzled in January-March. Trading has been consolidating this month, and not merely pausing after such an upward spurt or even because of some convergence of macroeconomic trends between the United States and Europan. These are disturbing times. Each day, more bad news […] More
Opening Currency Market Act of 2012
January 5, 2012
The dollar started 2012 on a high note just as it did in the first week of three of the past five years. Between yearend and January 7, the dollar appreciated against the euro by 3.6% in 2011, 2.5% in 2009 and 1.4% in 2007. It was unchanged in the first week of 2010 and […] More
Slightly Softer Dollar on Final Trading Day of 2011
December 30, 2011
The dollar depreciated overnight by 0.3% against the yen and both Aussie and New Zealand dollars. It also eased 0.1% against the Swiss franc and was fixed in China at CNY 6.3009, its softest fixing since the July 21, 2005 revaluation of the yuan. However, the greenback edged 0.1% higher against the euro and appears […] More
Currency Volatility Presents Another Problem in a Difficult Policy Environment
October 14, 2011
The factors that bolstered the dollar strongly in September abruptly shut down this month. For one thing, a new calendar quarter, and one that oftentimes has not been a good one for the dollar, has begun. Two, a string of better-than-expected U.S. economic data has created more than reasonable doubt that a recession is at […] More
Risk Aversion Isn’t Over until It’s Over
October 7, 2011
Don’t be fooled by the latest respite from risk aversion. Such will return and generally linger around for considerably longer. More about that in a moment after some quick comments on specific currencies. The euro/dollar key relationship is currently trading very near the $1.3375 average level for the nearly eight years that Jean-Claude Trichet has […] More
The First Six Weeks of 2011 in Forex
February 13, 2011
Major dollar relationships have traded in generally narrow ranges for the most part so far this year. A number of themes have emerged, which in the aggregate have not imparted any cumulating movement to currency markets. Investors are watching The U.S. labor market. While the growth of jobs has remained slow, the unemployment rate and […] More
Stocks Rebound After Chinese Data Release
October 13, 2010
Equities advanced 2.4% in India, 2.0% in Sri Lanka, 1.8% in Indonesia, 1.6% in Thailand, 1.7% in Singapore, 1.5% in Hong Kong, 1.4% in China and 0.7% in the Philippines and Malaysia. Stocks are up 1.4% in Germany and France and by 1.2% in Britain. Stocks lagged well behind in Japan (0.2%) and were unchanged […] More
New Wave of Risk Aversion
October 12, 2010
Typical of a more risk adverse market, the dollar is higher except against the yen and Swissy. Stocks, commodity prices and sovereign bond yields are lower. After a three-day weekend, the Nikkei dropped 2.1%. The Paris Cac, British Ftse and German Dax currently show declines of 1.3%, 0.9%, and 0.6%. Equities also fell by 1.7% […] More
