7 Aug 2019
International Economy
The People's Bank of China allowed its currency to fall below 7 Yuan to the US Dollar for the first time in 11 years after the US announced last week that it would slap a 10 percent tariff on USD300 billion of Chinese goods. The latest move by Beijing signals its readiness to retaliate against the US by allowing the Yuan currency to depreciate. China may use additional currency depreciation measures as a retaliatory action, and to ease the negative impact of tariffs on the Chinese economy. KResearch views that the Chinese authorities are unlikely to let the Yuan currency significantly weaken, because a drastic change in currency value could adversely affect China’s financial stability and shake investor confidence. ... Read more
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10 Oct 2018
It is apparent that the Thai currency and the Thai government bond yields - especially the long-term bond yields - have begun to ostensibly “swing” in the last quarter of the year. The Thai Baht weakened to touch THB33.10 against the greenback on October 9 (when the net sales of equities and bonds by foreign investors totaled THB4.63 billion and THB3.26 billion, respectively) or down by 2.6 percent from THB32.25/USD registered early October. Meanwhile, the Thai government 10-year bond yields steadily increased to 2.88 percent, the highest level in 21 months.... Read more
15 Aug 2018
In 2018, the Turkish economy is facing pressures from all sides amid risks threatening its economic stability such as the Federal Reserve interest rate hike, which accelerates fund outflows and continuously and quickly increases borrowing costs. An increasing oil price and weaker Turkish lira have caused Turkish inflation to surge. This latest crisis was triggered by intensified political tensions between the US and Turkey. Due to an anticipation of Washington’s harsh trade protective measures against Istanbul, investors have seemed to lose confidence in the Turkish economy, triggering the currency freefall.... Read more
26 Jul 2018
KResearch expects the Federal Reserve (Fed) to hold the policy rates steady at 1.75-2.00 percent during the fifth round of the Federal Open Market Committee (FOMC) meeting this year. The risk factor - that may disrupt the path of the US economic recovery in the remainder of this year - is still the ongoing trade dispute between the US and its main trading partners, especially China. The trade spat could slow the US’ economic growth. Nonetheless, strong fundamentals of the US economy should enable the Fed to further increase the policy rates gradually another 1-2 times during the remainder of this year. ... Read more