Posted at 6:30 PM , on January 17, 2017
Global bond guru, Mohammed El Erian, has warned the world markets about the perils of a strong dollar. As the world is coming to believe that a strong dollar could be a big benefit, Erian’s views are of tremendous value. Here are the 3 reasons why Mohammed El Erian is extremely wary of a strong US Dollar… Continue reading
Posted at 4:35 PM , on December 15, 2015
It really may not be too far off, but then no worries!
As the Rupee hovers around the 67/$ mark, it once again raises the specter of the rupee crossing 70/$. The memories of the 2013 crisis are still fresh in the minds of analysts and traders. With the US likely to hike Fed rates in December or early next year, it is all the more likely that the rupee could breach 70/$. However, despite an additional 5% depreciation, there is not much to be worried about. Here is why… Continue reading
Posted at 12:50 PM , on August 17, 2015
This may just be the beginning of the devaluation
Probably, most investors do not remember the last time when China devalued its Yuan. It was 21 years ago in 1994, when China shifted from the dual exchange rate system to a unified exchange rate system. It virtually amounted to fixing the black market rate as the official exchange rate. This led to the Chinese Yuan depreciating by 33%. Since then, the Chinese Yuan has been managed deftly in a range by the People’s Bank of China (PBOC). The question is whether the current 2% devaluation of the Yuan could be as acute as the 1994 episode? Continue reading