Yen Rally Fuelled by Fears of China Turmoil Spilling Over
When Shanghai stocks rallied nervously on Thursday, the relief in Tokyo was palpable. At least for the rest of the week, say exporters and investors who prefer a weaker yen, there is a chance they may be spared its return as the world’s favourite haven currency.
IMF Cuts World Growth Outlook
The IMF cut its forecast for global growth this year, citing a weaker first quarter in the US and warning that financial market turbulence from China to Greece clouds the outlook.
New BRICS Currency Pool is Insurance Against a Stronger Dollar
The central banks of the five BRICS countries are bracing for a stronger US dollar. On Tuesday, the central banks of Brazil, Russia, India, China and South Africa agreed to launch a long-planned foreign exchange currency fund of $100 billion. The move came during their seventh annual BRICS summit in Ufa, Russia.
Asia’s Top Currency Forecaster Picks 2015 Winners on Trade Data
ABN Amro Bank, which led Bloomberg’s emerging-Asia rankings in each of the last four quarters, says Taiwan and South Korea’s current-account surpluses will make their currencies the most resilient in the region this year as the prospect of higher US interest rates lures away investment.
Week Ending On A Constructive Note
There is a growing sense of optimism that a deal can be struck between Greece and its creditors. There is also a sense that although nearly half of China’s stocks are still frozen, that the dramatic sell-off is over.