The market has not changed its mind. Following Brainard’s comments yesterday the market had downgraded the chances, which were already modest, of a Fed hike next week. The September Fed funds futures is unchanged on...
Manmohan Singh is a man of history today; but for a long time he was in the centre of economic policy making. When she was Prime Minister, Indira Gandhi had once told him to control...
At the IMF/World Bank meetings this week, Chinese officials are again pushing for greater use of the IMF’s unit of account, Special Drawing Rights. It is China’s turn as the rotating host of the G20,...
China is the second biggest economy of the world and is ready to surpass US by 2016. With such a large population and high growth rate, it won’t be surprising to see China becoming larger...
I’ve been asked many times about the impending “death of the dollar.” I know some folks who expect the dang thing to die. They’re already envisioning the spectacle. An entire industry has sprung up to prepare...
There are three, and arguably interrelated, known unknowns that are seemingly on everyone’s mind. First is the decline in global equity markets. Is this simply a long overdue correction? Wasn’t August 24 some sort of...
The US dollar remains bid as liquidity begins to slip away from the foreign exchange market, not to return until April 7. The inability of the euro, and especially sterling to trade higher despite favorable...
As the year winds down, a Gordian knot tying Russia, oil prices and China together is receiving a great deal of attention. Let’s see if we can unravel some of the confusing twists and turns....
The run on the yen continues.The US dollar and euro are at new multi-year highs against the yen. The BOJ confirmed its JPY80 trillion monetary base target unexpectedly adopted at the end of last month....
Late yesterday, Yellen’s prepared remarks for her Senate Banking Committee confirmation hearings were released and sent the dollar in a tailspin in thin activity. The dollar has been gradually clawing back those losses. At the same...