Scotia Capital: Real to Fall 8% Against US Dollar; Ruble to Appreciate
The Brazilian real will sink against its US counterpart, as the inflation picture worsens alongside accelerated government spending, according to Scotia Capital. Oscar Sanchez, Latin America economist at the firm, expects the real to plunge 8 percent to 1.90 per US dollar. Mr. Sanchez said, “The government has been pumping money into the economy when… Continue Reading
Investec: Emerging Currencies, MXN to Outperform
Investec asset management sees long-term value in emerging nation currencies led by the Mexican peso: Emerging-market currencies will return more than advanced-nation peers this year as growth in developing economies exceeds the industrialized world, according to Investec Asset Management. The Mexican peso, Russia’s ruble and the Malaysian ringgit will lead gains as exchange-rate levels remain… Continue Reading
Asian Currencies Fall on Intervention Fears
Bloomberg is reporting that Asian currencies are heading lower as intervention fears are on the rise: Asian currencies retreated from a 19-month high, led by South Korea’s won and the Taiwan dollar, on speculation central banks will seek to limit appreciation that may hurt exports. The Bloomberg-JPMorgan Asia Dollar Index, which tracks the region’s 10… Continue Reading
Russia to Intervene In Ruble Appreciation
Bloomberg is reporting that Russia will actively intervene to contain the ruble’s appreciation: Russia, the biggest economy still cutting interest rates, will probably deploy a three-pronged strategy to steer an uneven recovery as the ruble soars, inflation hovers at a 12-year low and bank liquidity swells. The central bank has signaled it may cut the… Continue Reading
Goldman Sachs: Buy Overpriced BRIC Currencies
Bloomberg is reporting that Goldman Sachs is bullish on BRIC (Brazil, Russia, India, China) currencies despite Goldman’s proprietary models indicating that these currencies are overvalued: The currencies of Brazil, Russia, India and China are poised to gain even as a model of long-term value suggests they’re too strong, according to Goldman Sachs Group Inc. While… Continue Reading
