You are here

Dollar will stay weak if China has its way, Morgan Stanley says

Section: Daily Dispatches

By Justina Lee
Bloomberg News
Wednesday, February 7, 2018

As China's currency trades near to its highest level against the greenback since the 2015 devaluation, don't expect the government to engineer a reversal any time soon, according to Morgan Stanley.

That's because Chinese policy makers are now embracing a strong yuan as it helps boost consumption and draw inflows, Hans Redeker, London-based global head of foreign-exchange strategy at the U.S. bank, said Tuesday. Thanks to China's position as the world's largest reserves holder and trade partner, that means the dollar's weakness will persist.

"The rising renminbi has a messaging function into the region if not globally," Redeker said. "It suggests that China sees advantages in a weak U.S. dollar -- reverse of renminbi strength -- as the weak U.S. dollar helps keep the global economy via credit supported." ...

... For the remainder of the report:

https://www.bloomberg.com/news/articles/2018-02-07/dollar-will-stay-weak...



ADVERTISEMENT

A Network of Bullion Dealers Who Bid for Your Business

With a SmartMetals® account from the Hard Assets Alliance, you're always guaranteed the lowest prices for gold, silver, platinum, and palladium. When you buy bullion through your account, the alliance's network of trusted precious metals dealers launches into action -- and you’ll be shown the lowest price for your purchase. Also amazing is the low-cost storage available to you in six non-bank vaults around the world.

Click here to learn more:

http://www.hardassetsalliance.com/go/v34pm4/GAT



Join GATA here:

Mining Investment Asia
Monday-Wednesday, March 26-28, 2018
Marina Bay Sands, Singapore
https://www.mininginvestmentasia.com/

Mines and Money Asia
Tuesday-Friday, April 3-6, 2017
Hong Kong Convention and Exhibition Centre
https://asia.minesandmoney.com/

* * *

Help keep GATA going

GATA is a civil rights and educational organization based in the United States and tax-exempt under the U.S. Internal Revenue Code. Its e-mail dispatches are free, and you can subscribe at:

http://www.gata.org

To contribute to GATA, please visit:

http://www.gata.org/node/16