co-presented by
ASSOCIATE SPONSORS
co-presented by
ASSOCIATE SPONSORS
The countries whose currencies are considered as the most likely contenders to end dollar dominance are the ones which run large current account surpluses; how can they provide liquidity to the rest of the world?
Driving the dollar was speculation the Federal Reserve would start lifting interest rates from mid-year, while central banks in the European Union and Japan were busy easing policy by buying billions in government bonds.
China is Australia`s biggest trading partner and Australian firms have increasingly been settling their Chinese trade in yuan rather than US dollars, according to local media reports.
The Reserve Bank of India, which has taken a series of measures to support the battered rupee, said on Monday it will continue to manage money market liquidity in order to balance financial stability, growth and inflation.
A survey by HSBC f 700 businesses worldwide shows that firms are still apprehensive to use Yuan, the Chinese currency. Analysts believe that it may be due to the lack of education and lack of understanding to use those benefits.
This year the US trade deficit with China will probably be even worse. China's moderating economic growth will slow down its import demand, but the continuing recovery of the US economy will provide expanding markets for Chinese exports.
On the ground, PN Vijay says, its (political issues) impact on the actual macros of India like current account deficit or interest rates is going to be marginal.
Callum Henderson,MD, Global Head Of FX Research, Global Research Standard Chartered Bank takes CNBC-TV18's viewers through what to expect from the Euro area and what does the Greek debt default really mean to various asset classes and to the currency pairs.
Central banks across the developing world are signalling a retreat in the global currency wars, encouraging investors to flee the zero-yield dollar for emerging currencies even though the US money-printing exercise is approaching its end.
Peter Redward, Head Rates Research for Emerging Asia, Barclays Capital in an interview on CNBC-TV18 spoke about what has been happening with currencies lately and where this particular asset class is headed on the back of a lot of global newsflow.
