Wednesday, December 03, 2008
Paulson urges the Chinese to continue allowing their currency to strengthen against dollarTreasury
Secretary Henry Paulson, preparing for his final round of economic
talks with China, said Tuesday that Beijing must keep letting its currency rise in value against the dollar to help ease trade tensions with the United States.American
manufacturers contend that China's undervalued currency, the... [read more]
Monday, September 08, 2008
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... [read more]
Tuesday, August 19, 2008
Global capital markets remain caught in a tug of war between inflation and economic growth. For most of 2008, the economic growth story prevailed as the Federal Reserve Bank cut interest rates aggressively to cushion the blow from the housing crisis. However, the pendulum soon swung to inflation and the Fed began to worry that perhaps it had lowered rates too far and may in fact need to hike them... [read more]
Tuesday, August 19, 2008
In what some analysts have termed 'an act of desperation,' Vietnam has devalued its currency, the Dong, by .5%. Negative pressure had been building above the Dong for months, due to a burgeoning trade deficit, sagging stock market, and a stratospheric inflation rate, most recently clocked at 23%. Unfortunately for Vietnam's economic planners, the black market exchange rate remains nearly 5%... [read more]
Tuesday, August 19, 2008
In the context of fundamental currency analysis, we usually talk about inflation, interest rates, economic growth, politics, etc. But perhaps these variables mask some deeper "truth" in forex, specifically that there is some ultimate "force" guiding the decision-making processes of forex traders. What we are really talking about here is comfort with risk. Especially in the medium-term (the short-term... [read more]
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