Currency - General News

[behappyalways]

Saudi Arabia settles 42% of its oil transactions in RMB! Is the Iranian conflict accelerating de-dollarization?
Chen Fengxin: The RMB will strengthen in the long term, while the Japanese yen will weaken in the long term.

沙烏地阿拉伯石油42%用人民幣結算！伊朗衝突加速去美元化？陳鳳馨：人民幣長期走強，日元長期走弱【Yahoo#風向龍鳳配 】

https://m.youtube.com/watch?v=6IzG4gH0rn0

[behappyalways]

"Pushed Into Poverty": Somalia’s Currency Crisis Leaves Traders Holding Worthless Cash
https://www.zerohedge.com/markets/pushe ... hless-cash

[behappyalways]

Treasury Appointees Push To Put Trump's Face On A Brand-New $250 Bill
https://www.zerohedge.com/political/tre ... w-250-bill

[winston]

Is a currency crisis looming?

By PANKAJ C. KUMAR

During the AFC, most Asian countries were also vulnerable due to foreign currency debt exposure, twin deficits and even an unsustainable rise in property prices from heated stock markets brought about by hot money inflows.

The current weakness seen in most Asian currencies is mostly attributable to the strength of the US dollar, especially now that rate hikes are on the table rather than earlier expectations that Kevin Warsh would slash rates as per the US president’s demands for a lower rate.

Having said that, it is doubtful that the Fed will be in any way aggressive in raising rates due to its domestic issues, especially with respect to the government’s ballooning debt and deficit.

Source: The Star

https://www.thestar.com.my/business/ins ... is-looming

[behappyalways]

USA #24, I'm so proud.
https://x.com/duediligenceguy/status/20 ... 4411488755

[behappyalways]

US Mint Starts Selling $1 Trump Coins
https://www.zerohedge.com/political/us- ... rump-coins

[behappyalways]

U.S. Dollar Index Drops Below 99! Asian Currencies Rally! NTD Breaks 31.6, Yen Crosses 155, KRW H...
https://m.youtube.com/watch?v=0h2PJ-GOsyM

[winston]

Barclays Expects JPY to Continue Facing Structural Pressure; Global Reflation Has Broadly Similar Impact on Major Bond Markets

Barclays research team said in a report that, so far, the impact of global reflation on major bond markets has been broadly similar, resulting in volatile and directionless movements in the FX market.

How central banks respond to this shock going forward, will determine which currencies benefit from this round of inflation and which are dragged down.

The bank said this is not surprising. Despite various popular market narratives, the current interest rate trend is essentially global in nature, reflecting the broader reflation environment driven by resilient economic growth and rising commodity prices.

Its research showed that during periods of global interest rate volatility, the USD typically lacks a clear directional trend.

In contrast, interest rate changes driven by US-specific factors tend to have a more pronounced impact on the USD.

Currency performance in an inflationary environment is expected to diverge. The market has already fully priced in the reflation narrative and holds high expectations for subsequent central bank policy responses.

Whether central banks can meet market expectations may become a key factor driving further divergence in the FX market.

The bank expects the USD to maintain its appreciation trend, while the AUD is likely to outperform other currencies.

Meanwhile, the JPY may continue to face structural pressure, while risks related to the French election may weigh on the EUR.

Barclays said policy responses will determine currency trends. In Asian markets, currencies that can effectively respond to imported inflation pressures, such as the RMB and Singapore dollar, are expected to outperform currencies more driven by risk premiums.

Latin American currencies, except for the Chilean peso, may continue to benefit from higher carry trades, thereby supporting exchange rates.

In contrast, Central and Eastern European currencies (CEE) and the South African rand (ZAR) have yet to fully reflect the downside pressure from changes in trade conditions and overly optimistic market policy expectations.

The bank believes local currency interest rates in emerging markets are facing challenges. So far, the repricing of short-end rates in emerging markets has remained relatively limited, but mounting food and energy price pressures, together with competition from interest rates in the US and other G3 economies, may further raise the threshold faced by emerging market local currency interest rates.

The bank added that the US midterm elections are unlikely to bring fiscal policy or AI-related policy shifts significant enough to materially affect the FX market. (da/ad)

Source: AASTOCKS Financial News

https://www.aastocks.com/en/stocks/news ... -news/AAFN