The dollar will rise past 100 yen “very soon” as Japanese demand for U.S. debt revives, Credit Agricole SA, France’s third-largest bank, wrote in a report yesterday.
Brazil’s real may be set for a “slow depreciation” as the nation’s presidential election enters a runoff, though “robust” inflows of funds are likely to spur a rebound, according to Credit Agricole CIB.
The ties with China that helped make South Korea’s won a haven among emerging Asian currencies last year are turning it into a loser in 2014.
Malaysia’s ringgit led a surge in Asian currencies, climbing the most since the 1998 regional financial crisis, after the Federal Reserve unexpectedly refrained from cutting monetary stimulus.
The yuan sank to an 11-month low and options traders turned more bearish on the currency as China’s central bank doubled trading limits versus the dollar.
The pound is turning into the must- have currency for investors seeking to get in on the world’s biggest government-bond rally.
Not since before the global financial crisis have Europe’s banks been able to obtain dollars as cheaply as they can now, a development that may puncture the euro’s surprising strength.
A decade and a half of good housekeeping is spurring Asian currencies from Indonesia’s rupiah to Thailand’s baht as investors increasingly differentiate between emerging-market assets.
"There's no reason why we can't see a retest of the multi-year highs given the fact that we expect the Bank of England to hike rates earlier and positioning has now squared off."
- Mitul Kotecha on Aug 19, 2014
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