US dollar

How the US dollar destabilises the world

Little likelihood of a shift in the Fed’s policymaking mindset.

Karl Schiller, West Germany's economics minister between 1966 and 1972, pithily pronounced that "stability is not everything, but without stability, everything is nothing".

Tuesday, 4 March, 2014, 7:08am 5 comments

Emerging nations stem capital flows

The Bank of Japan is to refrain from adding extra economic stimulus after a slide in share prices that may hurt a growth drive. Photo: AFP

Emerging markets from Brazil to India took steps this week to stem an outflow of capital as concern mounted that developed nations are approaching an end to an era of pumping unprecedented liquidity into their economies.

14 Jun 2013 - 3:49am

Yuan heads for key level against dollar

Gains by the yuan against the Hong Kong dollar may feed into higher consumer inflation, Hang Seng Bank says. Photo: David Wong

The yuan could breach another key psychological level this year to trade at 6 to the US dollar as the mainland authorities seem inclined to ease the reins on the currency further.

Spot yuan closed yesterday at 6.1287 per dollar in Shanghai. It has been hitting 19-year highs frequently in the past few months and has strengthened about 1.7 per cent against the dollar since April.

6 Jun 2013 - 3:41pm

China's yuan set for monthly gain versus US dollar amid reform bets

The yuan rose 0.6 per cent against the dollar this month and was little changed for the week, according to China Foreign Exchange Trade System prices.

The mainland's currency, the yuan, headed for its third monthly gain yesterday as the central bank set a record fixing for the currency, fuelling optimism officials will accelerate exchange-rate mechanism changes.

1 Jun 2013 - 4:19am

China yuan near 19-year high versus US dollar as exchange reserves grow

Chinese yuan notes.  Photo: Reuters

The yuan traded within 0.2 per cent of a 19-year high yesterday, amid speculation capital inflows would spur appreciation. China might face "large scale" inflows of speculative funds in the next few years, which would drive asset prices higher and push up consumer prices, Su Ming, deputy head of the Ministry of Finance's research institute for fiscal science, said in an article published yesterday in People's Daily. New-home prices rose last month in 68 of 70 cities tracked by the government, data showed on Saturday.

21 May 2013 - 4:25am

Yield demand deters dim sum debt issuers

Many companies are keeping their yuan for trade settlement.

The cost of funding the so-called dim sum bonds has risen as the swap rates between the yuan and the US dollar are at record lows, tempering the pace of investment-grade corporate bond issues by foreign issuers, industry experts said at a forum yesterday.

9 May 2013 - 5:15am

Beijing cracks down on hot money inflows for bets on yuan appreciation

Firms took loans in US dollars and converted them to yuan.

In a circular to commercial banks the State Administration of Foreign Exchange (SAFE) introduced for the first time a minimum net open position in US dollars, restricting banks' capacity to lend in the greenback.

7 May 2013 - 4:17am

Hong Kong not gaining from peg

Peg is wiping out productivity gains of diligent middle class. Photo: Bloomberg

The Hong Kong dollar is pegged to the US dollar by a currency board. This obsolete arrangement is also used by other economies such as Bermuda, Antigua and Barbuda, and the Cayman Islands.

6 May 2013 - 2:55am

'Made in America' means added pain for Hong Kong

'Made in America' means added pain for Hong Kong

For the past 10 years, Hong Kong's economy has been boosted by twin external superchargers. Now, both are in danger of breaking down.

2 May 2013 - 3:47am 13 comments

HKMA's push for yuan as an economic pillar is puzzling

HKMA's push for yuan as an economic pillar is puzzling

Why should a company outside of China want to accept payment in yuan for goods exported to China? Where can it find yuan to pay for imports from China?

28 Apr 2013 - 5:02am 2 comments

Yuan's rise traps authorities between rock and hard place

The yuan climbed to a record post-revaluation high against the US dollar yesterday. After its recent gains, the Chinese currency has now appreciated by 1 per cent against the US dollar so far this year.

26 Apr 2013 - 4:13am

Yuan reaches record high against the US dollar

The yuan jumped to 79.775 Hong Kong dollars per 100 yuan, just near the record of 79.729 on Wednesday.

The People's Bank of China set the midpoint at 6.2506 yuan per US dollar - up from the fixing of 6.2578 on Thursday - ahead of a visit by US Secretary of State John Kerry to Asia. The yuan jumped to 79.775 Hong Kong dollars per 100 yuan, just near the record of 79.729 on Wednesday.

13 Apr 2013 - 6:22am 12 comments

Yuan strengthens to highest level against US dollar in 19 years

The yuan strengthened 0.02 per cent to close at 6.2107 per US dollar in Shanghai.

The yuan strengthened beyond 6.21 per US dollar for the first time in 19 years yesterday after the People's Bank of China raised the currency's reference rate and as investors reassured by a bailout deal for Cyprus returned to emerging-market assets.

26 Mar 2013 - 4:59am

HKMA prays for deliverance from loose money

The Hong Kong dollar is hardly under attack at the moment. Photo: Bloomberg

If they are not quite down on their knees at the Hong Kong Monetary Authority (HKMA), there is a least a silent prayer emanating from that tall office block with the set of roof claws from the movie Alien.

8 Jan 2013 - 7:45am

Bubble trouble for fixed-income assets?

US Federal Reserve must keep interest rates low for a while longer. Photo: AFP

Fixed income was the hot asset of 2012, producing equity-like returns for debt-like risks. Within it, Asian bonds issued in US dollars produced stellar returns for investors. While Asian US dollar bonds produced a total return of 14 per cent, the high-yield sector within it outperformed it with eye-popping gains of 19 per cent.

31 Dec 2012 - 4:58am