Cbonds on LinkedIn: #cbonds #currencies #emergingmarkets #usd #economy #financialmarkets (2024)

Emerging East Asian currencies weakened against the US dollar, with a slight depreciation of 0.7% (simple average) and 2.4% (GDP weighted).In March, most regional currencies strengthened, following expectations of dovish monetary stances after Silicon Valley Bank was placed under receivership on 10 March.However, in April and May, the USD strengthened again on signs of continued tightening. The biggest currency loss in emerging East Asia was recorded in the Lao PDR (4.1%) due to high inflation, a wideningtrade deficit, and debt stress.Read the June 2023 #AsiaBondMonitor ⬇️https://lnkd.in/g7ajV9MR

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Wednesday, 28thJune2023 - South African rand weakens against stronger dollar By Tannur Anders: JOHANNESBURG (Reuters)The South African rand weakened in early trade on Wednesday, giving up some gains from the previous session, as the U.S. dollar edged higher.At 0714 GMT, the rand traded at 18.5700 against the dollar , 0.26% weaker than its previous close.The dollar last traded at 102.600 against a basket of global currencies, up 0.088%.The rand strengthened at the start of the week as analysts speculated the weekend's aborted mutiny in Russia may mean President Vladimir Putin could skip a BRICS summit, where South Africa would, in theory, be obliged to arrest him.The BRICS group of emerging economies -- Brazil, Russia, India, China and South Africa -- is due to hold the summit in Johannesburg in August."This morning, the rand has given up some of that recovery but still shows the potential to recover further," ETM Analytics said in a note.Like other emerging market currencies, the risk-sensitive rand is susceptible to moves in global drivers, such as the dollar, in the absence of local catalysts.South Africa's benchmark 2030 government bond was weaker in early deals, with the yield up 1.5 basis points to 10.535%.#southafrica #ceo #cfo

Asia slams brakes on dollar's record run ⛔The US dollar has been on a winning streak lately, notching gain after gain against international currencies.But this week, the dollar's joyride hit a speed bump as Asia's major central banks intervened to restrain its rapid rise 💸The dollar was riding high as the MVP of the global currency market.But now, the star players from China and Japan have checked the dollar's dominance to help their home currencies.China told dollar speculators to back off the yuan. Meanwhile, Japan hinted its zero-interest rate policy may finally end, sending the yen upward 📈Today, the dollar index dropped the most in months, and its supremacy is again challenged.For those of us watching the currency market's power dynamics, it's been intriguing to see the dollar's unchecked advantage get pushed back against ✋The dollar's meteoric rise was starting to damage Asian economies.Time will tell whether this effort to rein in the dollar's winning ways will stick. But for now, it's been humbled.What's your view on the USD? Comment below 👇#markets #investing #economy #money #stockmarketEnjoyed this post?👍 Like💬 Comment🔔 Subscribe to my profile

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The U.S. dollar’s share in global reserves fell below 60% for the first time in decades, according to a new report. While the U.S. dollar is experiencing a dip, other currencies like the Euro, Pound, and Yen are seeing a rise. The development is being observed as a growing number of countries begin to settle trade in their national currencies. The de-dollarization process gained steam after BRICS initiated the idea of ending reliance on the U.S. dollar.https://lnkd.in/gDqArXZd

💸De-dollarizationThe US dollar has dominated global trade and capital flows of investors for many decades, but BRICS countries are actively seeking alternatives to reduce their dependence on the US.🤝Brazil and China have reached an agreement to abandon the US dollar in trade transactions in favor of their own currencies.India and China plan to trade in their own currencies to reduce their dependence on the dollar.In 2022, central banks were buying gold at the fastest pace since 1987, signaling a desire to back their currencies with gold rather than the dollar.Sanctioning countries are actively getting rid of dollar reserves by increasing their gold and yuan reserves.Since 2000, the US dollar has slowly but steadily lost its share of global foreign exchange reserves.🙌Subscribe to our page and share useful information!👉Read more: https://lnkd.in/ejMFkU-C

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Credit to Albert ParkJuly 8, 2023Regional currencies weakenedagainst the US dollarhttps://lnkd.in/gBhHZPW2Emerging East Asian currencies weakened against the US dollar, with a slight depreciation of 0.7% (simple average) and 2.4% (GDP weighted)In March, most regional currencies strengthened, following expectations of dovish monetary stances after Silicon Valley Bank was placed under receivership on 10 March.However, in April and May, the USD strengthened again on signs of continued tightening. The biggest currency loss in emerging East Asia was recorded in the Lao PDR (4.1%) due to high inflation, a widening trade deficit, and debt stress.Read the June 2023 #AsiaBondMonitorhttps://lnkd.in/g7ajV9MR

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📈 Emerging Currency Insights: US Dollar's ImpactIn the realm of emerging market currencies, the US dollar is poised to gain strength, but there are exceptions. Let's explore the key insights:1. The Malaysian Ringgit and Colombian Peso: These two currencies stand out as potential outperformers. The exception is a mix of factors:Narrowing Interest Rate Differentials: The interest rate gap between Malaysia and the US has tightened, offering support to the ringgit.Robust Current Accounts: Malaysia and Colombia both maintain strong current account surpluses, providing a shield against external shocks.Strong Economic Growth: Both countries are expected to experience robust economic growth, boosting demand for their currencies.2. On the Flip Side: Egyptian Pound: The exception is that the Egyptian pound might face challenges due to factors like high inflation, a weak current account balance, and political uncertainty ahead of the 2024 presidential election.As always, remember that investing in currencies carries risks. How do you think these trends will impact global financial markets? Share your thoughts! 💬#CurrencyAnalysis #EmergingMarkets #FinanceInsights #InvestmentTrends

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Dollar Dominates, Yen Dips: Shifting Sands in Global Currency Markets 🌍💹In the ever-evolving dance of the global currency markets, the yen has hit a near 10-week low, signaling a cautious stance from traders on the Bank of Japan's (BOJ) interest rate moves. Meanwhile, the dollar's ascendancy continues, marking its fourth weekly climb, a testament to the resilience of the U.S. economy and labor market. With the BOJ unlikely to raise rates rapidly and the Fed's rate cut expectations pushed further out, the financial landscape braces for the U.S. #CPI inflation report, setting the stage for the dollar's potential rally. Amidst these dynamics, currencies like the euro and sterling hold steady, while the New Zealand dollar sees unexpected support. As we watch these shifts, one thing remains clear: the intricate balance of global monetary policy continues to captivate and shape markets.#CurrencyMarkets #Yen #DollarStrength #BOJ #FedRateSpeculation #EconomicResilience #GlobalFinance #MarketTrends𝐍𝐨𝐭𝐞: 𝘛𝘩𝘦 𝘤𝘰𝘯𝘵𝘦𝘯𝘵 𝘴𝘩𝘢𝘳𝘦𝘥 𝘪𝘴 𝘧𝘰𝘳 𝘪𝘯𝘧𝘰𝘳𝘮𝘢𝘵𝘪𝘰𝘯𝘢𝘭 𝘱𝘶𝘳𝘱𝘰𝘴𝘦𝘴 𝘰𝘯𝘭𝘺 𝘢𝘯𝘥 𝘯𝘰𝘵 𝘧𝘪𝘯𝘢𝘯𝘤𝘪𝘢𝘭 𝘢𝘥𝘷𝘪𝘤𝘦. 𝘊𝘰𝘯𝘴𝘶𝘭𝘵 𝘢 𝘧𝘪𝘯𝘢𝘯𝘤𝘪𝘢𝘭 𝘱𝘳𝘰𝘧𝘦𝘴𝘴𝘪𝘰𝘯𝘢𝘭 𝘣𝘦𝘧𝘰𝘳𝘦 𝘪𝘯𝘷𝘦𝘴𝘵𝘪𝘯𝘨.

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With the Euro crossing 1,11 vs the USD, the currency of "dysfunctional Europe" so often rediculed for its energy, defense and social problems have now gained 3,7% against the mighty USD YTD.Meanwhile, in parts of Emerging Markets the party among currencies have been much better:Brazilian Real +8,7%Mexican Peso + 13%Columbian Peso +21%And even in trade-driven Asia, outside of the Chinese Reminbi (down all of 3,5%) it hasn't been too bad:Singapore Dollar + 1.4%Taiwan Dollar +0,8%Indonesia +0,5%I am bearish on the dollar and bullish on GEM for 2024! Indeed, the supply of fiat currencies across all the major developed economies looks likely to stay very expansionary for the coming year and beyond. Basically these places now all look very much like Emerging economies of old...

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🌍 Dollar’s Decline Throws Spotlight on Battered Commodity Currencies 🌍📰 In the wake of the dollar's potential weakness, some investors are eyeing commodity-producing countries like Norway and Australia.Let me explain:🔻 Many commodity currencies suffered this year due to falling raw material prices and concerns over central banks' fight against inflation.📊 However, the growth in the US and other countries has proven resilient, leading to a belief that a global economic downturn is unlikely.🌍 The recent pledge by China to step up policy support for its economy has further bolstered the bullish view on commodity currencies.⬆️ The prices of oil, copper, and other raw materials have risen, and currencies like the Australian and New Zealand dollars have edged up.💼 The Norwegian crown, New Zealand dollar, and South African rand have seen declines and are considered undervalued against the dollar.📊 Deutsche Bank's analysis shows the Norwegian currency undervalued by over 30%, while the Australian dollar is undervalued by about 20%.💼 Betting against the dollar carries risks, as it could rebound if inflation remains stubborn or the Fed is more hawkish than anticipated.🌍 Nevertheless, some strategists believe there is room for further appreciation in commodity currencies like the Swedish and Norwegian currencies.🔝 Any signs of economic strength in these countries could boost their currencies.#CommodityCurrencies #DollarWeakness #InvestmentOpportunity #GlobalEconomyhttps://lnkd.in/gjwWWUYJ