If it was oil causing Wall Street instability that would be a surprise. I think that is an excuse to take focus off the Chinese currency. In the past when oil fell the manufacturing sector did better because there were lower costs.
January 14, 2016
By Chao Deng
January 14, 2016
By Chao Deng
...China's yuan fell sharply (click here) in early trade in the offshore market Thursday, cutting into some of the gains the currency made earlier this week when the Chinese central bank intervened to prop up its value. It fell as much as 0.7% to 6.6128 to one U.S. dollar Thursday in the offshore market even after the central bank set the rate at which it trades in the domestic market stronger against the U.S. dollar.
The moves in the freely traded offshore yuan highlight Beijing's continued struggles to tame the currency and guide investor expectations on how far the yuan could fall. In recent weeks analysts have lowered their forecasts for where they think the yuan will trade against the U.S. dollar this year.
The gap between the offshore and onshore yuan is a sore point for Beijing as it seeks to promote the yuan as a stable currency with international stature.
"The [Chinese] currency is causing tension in the whole world," said Stephen Ma, head of greater China at BMO Global Asset Management. "What we're seeing now is the result of a lot of government intervention" from China.
Earlier, China's central bank fixed the yuan at 6.5616 to one U.S. dollar, slightly stronger from the previous fix of 6.5630 on Wednesday.
The onshore yuan, which can trade 2% above or below the central bank's daily guidance, was last at 6.5861, slightly weaker than 6.5756 the previous session....
China is saying the US Dollar is worthless because of the QEs of the Fed.
August 21, 2015
By Joseph Adinolfi
China is saying the US Dollar is worthless because of the QEs of the Fed.
By Joseph Adinolfi
The dollar (click here) finished lower for the second week in a row Friday as plunging U.S. stocks pushed volatility to uncomfortable levels, forcing investors to reevaluate their expectations for the timing of the first Federal Reserve interest-rate hike since 2006.
The ICE U.S. dollar index DXY, -0.13% a measure of the dollar’s strength against a basket of six currencies, finished the week down 1.7% at 94.9720.
The monetary policy divergence trade — the notion that the Federal Reserve is tightening monetary policy while other central banks remain in easing mode — has helped the dollar appreciate over the past year.
But a confluence of destabilizing events — including last week’s depreciation of the Chinese yuan, the sell off in U.S. stocks and falling crude-oil prices — have caused market strategists to doubt a Fed rate hike will happen this year.
Some analysts now believe the Bank of England might raise interest rates ahead of the Fed....
In the past when stock became uncertain commodities, primarily petroleum, was a place to hide. That is gone. If currency is where everyone is taking shelter and the USA dollar becomes unstable and/or devalued there will be significant losses past those already realized.
I stated there was a very real reason to maintain a local economy post 2008. Here it is.
In the past when stock became uncertain commodities, primarily petroleum, was a place to hide. That is gone. If currency is where everyone is taking shelter and the USA dollar becomes unstable and/or devalued there will be significant losses past those already realized.
I stated there was a very real reason to maintain a local economy post 2008. Here it is.
