China 

China should promote yuan’s globalisation through cooperation not conflict with US dollar, report says

China should avoid going head to head with the US dollar as it seeks to promote the use of the yuan around the world and instead make London a key offshore centre for the yuan while developing opportunities in countries linked to its Belt and Road Initiative, according to new research.Beijing should also sign a free-trade agreement with Britain as soon as possible, and push for better trade and investment cooperation with the European Union, Renmin University of China said in a report released… Source link

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Donald Trump wants a weaker US dollar. But that’s just bad economics

Is the tide finally turning against King Dollar? The Bloomberg Dollar Spot Index – a gauge of the greenback’s performance against a basket of other major currencies – has dropped 1.4 per cent since the end of May.Currency traders, moreover, are turning bearish on the dollar, increasing their underweight positions since the start of last month, according to data from Bloomberg.The slide in the dollar will embolden US President Donald Trump to step up his intervention to weaken the currency,… Source link

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Hong Kong rates climb to 2008 highs, dollar jumps before jumbo IPO

The Hong Kong Interbank Offered Rate (Hibor) rose across the curve on Thursday, with investors scrambling for cash ahead of the world’s biggest initial public offering of the year at a time of tight liquidity in the domestic market.Brewer Anheuser-Busch InBev NV (AB InBev) is seeking to raise up to US$9.8 billion by listing its Asia-Pacific business in Hong Kong this month.On Thursday, the one-month and two-week tenors shot up to 2.99 per cent and 3.53 per cent, respectively, their highest… Source link

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US should start manipulating the dollar, Donald Trump says, accusing China and Europe of playing ‘big currency manipulation game’

US President Donald Trump on Wednesday accused China and Europe of playing a “big currency manipulation game”. He said the United States should match that effort, a move that directly contradicts official US policy not to manipulate the dollar’s value to gain trade advantages.In a tweet, the president said that if America does ‘match’ China and Europe, the country will continue “being the dummies who sit back and politely watch as other countries continue to play their games – as they have for… Source link

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Between Fed rate cuts and the dominant US dollar, Donald Trump can’t have it all

The pre-eminent status of the US dollar in the global financial system, even in the era of floating exchange rates, has long afforded the United States the latitude to pursue its domestic policy agenda, knowing that the rest of the world has to hold its currency anyway to facilitate international transactions. But that “exorbitant privilege”, to use the term coined in 1965 by France’s then finance minister Giscard d’Estaing, should not be taken for granted by Washington. The centrality of the… Source link

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Vietnam 

Đồng weakened slightly against the US dollar in H1 2019 – Economy – Vietnam News | Politics, Business, Economy, Society, Life, Sports

  A VP Bank staff member counts money at a transaction office in Hà Nội. The đồng has inched down by only 0.4 per cent against the end of last year. — Photo courtesy of VP Bank HÀ NỘI — The Vietnamese đồng has gained some strength against the US dollar in the past month, helped by abundant domestic supply and favourable global conditions. The đồng appreciated by 0.47 per cent against the greenback last month and continued to strengthen in the first days of July. With the gain, the đồng has inched down…

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Hong Kong’s dollar strengthens toward higher end of trading band against US dollar as interbank rate rises

Hong Kong’s borrowing costs are stuck near decade-highs, adding momentum to the local currency.The Hong Kong dollar traded in the stronger half of its band against the US dollar for the first time since September, rising as much as 0.18 per cent to 7.7995.While local interbank rates dipped Tuesday, the cost to borrow the currency remains higher than the income a trader can expect on US dollars. That’s killing the Hong Kong dollar carry trade by making money more expensive in the city.Rates are… Source link

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How the extradition bill crisis threatens Hong Kong’s currency peg to the US dollar

Imagine a frightening scenario where Hong Kong suffers from massive capital outflows. The stock market plummets, property prices tumble and confidence evaporates. To protect themselves, residents instinctively convert their Hong Kong dollar savings into safer currencies such as US dollars and euros.In an effort to stem the outflow of money and maintain the US dollar peg, the Hong Kong Monetary Authority is forced to propel borrowing rates to astronomic levels. This policy response has the… Source link

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China 

Is China’s concern over a possible US dollar shortage risk forcing companies to sell overseas assets?

This is the final article in a three-part series looking at China’s US dollar shortage risks in the trade war, as it aims to open up its markets.Anbang Insurance Group’s decision to sell its condos at the Waldorf Astoria hotel in New York is the latest in the string of high-profile Chinese divestments that underscores China’s concern that the nation is running short of US dollars.The Chinese holding company bought the Waldorf for a record US$1.95 billion in 2014, but under pressure from the… Source link

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Exporters, utilities and miners to benefit with yuan likely to weaken beyond seven to US dollar for first time in decade

The yuan is widely expected to test the psychologically important rate of seven to a US dollar for the third time in three years, amid an escalating trade war between China and the United States, the world’s two biggest economies.But unlike 2016 and 2018, when Beijing intervened to support the Chinese currency, its central bank governor, Yi Gang, has indicated there are no “redlines” for the exchange rate this time.“Chinese growth is likely to be further derailed by the ongoing trade war … [it]… Source link

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