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The Australian Dollar - Expect modest weakness
The Australian Dollar - Expect modest weakness

... Currency markets are poised for rising US interest rates and rates staying low almost everywhere else. This is what drove the US dollar’s meteoric rise through 2014-15 (see top chart). However, this means that monetary policy divergence is already priced in to the strong US dollar, to an extent. Mar ...
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... domestic prices are rising faster than foreign prices and the ratio is increasing - The real exchange rate can then appreciate for two reasons: (1) when the nominal exchange rate appreciates and inflation rates at home and abroad are equal, and (2) when the nominal exchange rate is stable but inflat ...
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... The information set forth in this communication is proprietary information of Citigroup Global Markets, Inc. and its affiliates (collectively, “Citi”) and is being provided to you solely for your use and the internal use of your firm in assessing the entry into derivative, securities, loan or other ...
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Currency War of 2009–11

The Currency War of 2009–2011 is an episode of competitive devaluation which became prominent in September 2010. Competitive devaluation involves states competing with each other to achieve a relatively low valuation for their own currency, so as to assist their domestic industry. With the financial crises of 2008 the export sectors of many emerging economies have experienced declining orders, and from 2009 several states began or increased their levels of intervention to push down their currencies.Both private sector analysts and politicians including Tim Geithner have suggested the phrase currency war overstates the extent of hostility, but the term has been widely used by the media since Brazil's finance ministers Guido Mantega September 2010 announcement that a ""currency war"" had broken out.Other commentators including world statesmen such as Manmohan Singh and Guido Mantega suggested a currency war was indeed underway and that the leading participants are China and the US, though since 2009 many other states have been taking measures to either devalue or at least check the appreciation of their currencies. The US does not acknowledge that it is practicing competitive devaluation and its official policy is to let the dollar float freely. While the US has taken no direct action to devalue its currency, there is close to universal consensus among analysts that its quantitative easing programmes exert downwards pressure on the dollar.According to many analysts the currency war had largely fizzled out by mid-2011, though others including Mantega disagreed. As of March 2012, outbreaks of rhetoric have still been occurring, with additional measures being adopted by countries like Brazil to control the appreciation of their currency. Yet by June, there were signs that currency misalignment had been levelling out in China and across the world, with even Mantega relaxing some of Brazils anti-appreciation controls. Alarms were raised concerning a possible second 21st currency war in January 2013, this time with the most apparent tension being between Japan and the Euro-zone.
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