Posts Tagged ‘ emerging markets ’
After the impressive rally in the US Dollar at the end of 2009, many market observers predicted that the end was near for the Dollar carry trade. That’s because volatility is the sworn enemy of carry traders; whenever there transpires a sudden change in direction in a funding currency, investors will usually race for the [ READ MORE ]
In some ways, 2009 was a wild year in forex markets. Compared to 2008, however, it was relatively tame. And that is all I have to say about forex in 2009. Ah, if only it were that simple… The year began as a continuation of 2008. Global capital markets were still in the throes of the credit [ READ MORE ]
The Korean Won is up 32% since March, and 8.2% on the year. At the same time, it is 20% below is 2007 year-end level, as well as 13% weaker than the 2006 average of 955 and 15.5% weaker than the 2007 average. Focusing only on the Won’s appreciation would probably cause some technical analysts to [ READ MORE ]
The Brazilian Real has been the world’s best-performing currency against the Dollar in the year-to-date, having risen 32% through the beginning of October. At this point, a mere 8% rise would send it crashing through the high that it touched last summer, prior to the collapse of Lehman Brothers. The currency has now firmly returned to [ READ MORE ]
After a brief pause, the world’s Central Banks (or at least those in Asia) have begun to once again accumulate foreign exchange reserves. I’m not one for hyperbole, but the figures are downright eye-popping: “Reserves held by 11 key Asian central banks totaled $2.625 trillion at the end of August, up from $2.569 trillion at [ READ MORE ]
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