Yuan'wards and Upwards

rffrydr · Posted: Wed Dec 26, 2007 9:17 pm Post subject: Yuan'wards and Upwards

Big move for the year; for the night:

http://www.bloomberg.com/apps/news?pid=20601087&sid=a.N1gin2q7Ns&refer=home

They're beginning to follow the japanese this last quarter who rediscovered the value of a strong currency--especially a currency that can offset inflationary pressures. Ironically that discoverery helped tip the Carry of FDI to their shores and helped trigger a correction in the euro. Brimming with newfound patriotism (see Baidu post) and confidence how long before they embrace a stong Yuan?--a strong Yuan as a rejection of US Policy Idea

One consequence will be to take the pressure off the euro regarding flows imbalances. Do the japanese follow up as they did down?
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Today is the Tomorrow you worried about Yesterday!

chestnutstime · Senior Poster Joined: 24 Oct 2007 Posts: 89

http://www.ft.com/cms/s/0/66f625ac-06a0-11dd-802c-0000779fd2ac.html

Chestnut

rffrydr · Posted: Thu Apr 10, 2008 6:34 am Post subject:

Breaks 7:

http://www.bloomberg.com/apps/news?pid=20601080&sid=aJCoiyyRGGTU&refer=asia
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Today is the Tomorrow you worried about Yesterday!

rffrydr · Posted: Mon Jan 14, 2008 9:54 pm Post subject:

January 3rd. 1Year LIBOR angles under chinese doposit rates:

http://www.economist.com/finance/displaystory.cfm?story_id=10499076
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Today is the Tomorrow you worried about Yesterday!

HenryTo · Posted: Thu Dec 27, 2007 12:25 am Post subject:

I believe this - and potentially more revaluations in 2008 (simply because they have no other choice) - will take the pressure off other Asian countries to put a lid on their currencies vis a vis the US Dollar going forward. This will make other Asian exporters relatively more competitive, and should be a boon to both the Japanese Yen and Japanese large caps going forward. Whatever it's good for Japanese large caps should be good for Japanese small caps as well, at least in 2008 anyway.

I am betting that Japanese small caps will outperform in 2008.