Japan’s Finance Ministry finally capitulated on September 15, announcing intervention in the currency market for the first time in six years in a bid to temper yen strength. The quick-fire announcement followed the victory of incumbent Prime Minister Naoto Kan a day earlier in the ruling Democratic Party of Japan leadership contest. Clearly, then, the… [Read more]
Business Monitor’s bullish stance on a host of emerging market (EM) currencies in recent quarters reflects one of our core macroeconomic assumptions, namely that unprecedented quantitative easing and loose fiscal policy measures in the US in 2009 would ultimately foster significant depreciatory forces for the US dollar. While this may not be visible in the… [Read more]
During a week when the Dow Jones pushed above 10,000 and oil set up a new high this year, there certainly is plenty to look at across emerging markets (EM), and in particular in Latin America. Most Latin equities have been posting further impressive gains this week, and most currencies look strong against the US… [Read more]
In keeping with a view Business Monitor International (BMI) has been promoting for some time, the Australian dollar is looking good against a number of regional currencies. Though I have already spoken of its relative value against the euro, I think the Aussie also looks particularly attractive against the Japanese yen. Consider the following chart:… [Read more]
