Countries have long used currencies as a tool to gain competitive advantage and economic muscle. However, in modern-day context, currency devaluation has a greater political subtext where manipulation by a stronger country doesn’t allow it hegemonic control over others, reports The Globe and Mail. The report features an interview with Benn Steil, director, international economics, […]
China has expanded its renminbi qualified foreign institutional investor (RQFII) quota scheme, sweetening for foreign investors the prospects of investing in China. The new regulation further enables international investors to use their renminbi holdings to buy onshore assets, reports FT.com. The changes are said to mainly benefit financial institutions registered and operated in Hong Kong, […]
Central bank stimulus is now driving asset values around the world.
The U.S. dollar has shaken off its negative correlation with U.S. equities. Since the fall of Lehman Brothers, the dollar and equities have moved in the opposite direction to each other, but this year they have both risen, reports FT.com. Some analysts say the reason for this trend is the perception among investors that the […]
Canadian investors now have access to two new global funds.
European industry is reeling from the impact of the strong euro. The worst hit are the sectors that do business mainly in a foreign currency and exporters who are losing their competitive advantage due to a stronger home currency, reports FT.com. Although below its 2007 peak, the euro has gained 7% against the dollar and […]
People are focusing on equities, so precious metals aren’t getting much attention.
The penny may now be history, but it won’t yet be forgotten.
The Japanese currency got hammered on Monday after the latest round of selloff caused it to tumble against the dollar and euro. The yen’s losses snowballed after the U.S. Treasury reconfirmed its support for monetary stimulus in Japan, which markets took as a cue for abandoning the yen, reports FT. Japan’s perusing a policy of […]
There are fears that the issue of currency wars may get undue attention at this week’s Group of 20 leading nations meeting in Moscow. Philipp Hildebrand, former chairman of the Swiss National Bank, urges participants in an opinion piece in FT.com to refrain from fanning the currency debate. He argues there is no such thing […]