Currency

Taiwan insurers get a stern currency warning

12 May 2025

The local dollar’s strong rally against the greenback will hit earnings at Cathay Life and peers, which have some $760 bln invested abroad. Hedges and reserves soften the blow. But the underlying mismatch of domestic policies funding overseas assets is an enduring risk.

US exceptionalism becoming a matter of perspective

8 May 2025

American stocks trounced the rest of the world for years, as Berkshire Hathaway’s outgoing CEO Warren Buffett likes to point out. But for foreigners, it was partly thanks to a surging dollar. If those days are over, Uncle Sam’s outperformance may only persist for US investors.

Beijing’s firm yuan nudge can cool Asia FX rally

6 May 2025

The central bank is keeping its dollar trading band steady, suggesting President Xi won't throw exporters under the bus. Issues like de-dollarisation fears mean Asian currencies’ rise may not reverse. But China's approach can help anchor the region during Sino-US trade talks.

Gold’s golden moment dazzles better-value rivals

2 May 2025

The price of the yellow metal has soared 25% this year as investors fret about inflation and the future of the dollar. It has left metals like silver and platinum far behind. Though they lack gold’s strong brand, other commodities offer better long-term prospects for investors.

Europe can take advantage of King Dollar’s wobble

24 Apr 2025

US President Donald Trump’s policies have weakened the greenback, offering the euro an opening to take its place as the world’s reserve currency. A $34 trln banking system plays to Europe’s favour. All that’s needed is more joint debt to create safe assets to rival Treasuries.

De La Rue’s final deal looks surprisingly positive

15 Apr 2025

After years of selling assets and battling with decline, the UK banknote printer accepted a $350 mln private equity offer. It’s a better outcome than seemed possible a few years ago, when the company was worth $50 mln. And there’s scope for the new owner to boost margins.

What could knock King Dollar off its throne

15 Apr 2025

The world’s dominant currency has survived devaluation, inflation, war, and many crises. US President Donald Trump’s return raises new doubts. In this episode of The Big View podcast, Paul Blustein talks about the secrets of the greenback’s success – and what could end its reign.

Sickly dollar leaves shrinking pool of safe havens

7 Apr 2025

Donald Trump’s tariffs have dented the US currency, undermining traders’ favoured port in a storm. The Swiss franc and Japanese yen are benefitting from the dash for safety, while gold is the classic refuge. Still, in a global downturn there are few places for investors to hide.

Yuan is strategic barometer for China post-tariffs

7 Apr 2025

Beijing is weakening its currency slowly, indicating some hope for tariff negotiations with the US. Limiting the downward pull of the yuan will also smooth talks with Asian peers as it seeks a functioning network of trading partners in a post-tariff world.

Why financial warfare could backfire on the US

18 Mar 2025

Washington has sharpened the dollar and technology into powerful weapons. Now erstwhile allies fear they are targets. In this episode of The Big View podcast Edward Fishman, the author of ‘Chokepoints’, explains how economic interdependence is increasingly at odds with security.

New US Asia pivot is better timed than the last

20 Feb 2025

Defense Secretary Pete Hegseth wants to focus on ‘peer competitor’ China. Past administrations failed to do the same. But with the People’s Republic looking increasingly financially constrained, now might be a more opportune moment in which to contest Beijing’s global influence.

Wall Street’s regulation wish list plays with fire

22 Jan 2025

The finance industry wants to move on from post-crisis rules. Legitimate cryptocurrencies and looser capital rules top the agenda. Some in the Trump administration have a larger teardown in mind. That may create conditions for new contagion, with taxpayers again holding the bag.

US exceptionalism turns dollar into global problem

16 Jan 2025

The greenback is up 15% against its peers in the past three years. The new administration’s plans for tariffs and tax cuts could make it even stronger than markets expect. Europe, Asia and the UK will have to weather weaker currencies and investor outflows for a while longer.

The yuan will pull India into a shadow game

13 Jan 2025

The rupee hit an all-time low against the US dollar. The incentive to prop it up to help New Delhi win investment is fading. Policymakers may let it weaken with the Chinese currency which is under pressure on potential tariffs but that will come with some costly trade offs.

Yuan’s fall would be a gift to Bank of Japan

16 Dec 2024

Talk of devaluation by Beijing to blunt any impact of an aggressive ratcheting up of US tariffs is jolting currency markets primed for a trade war. A drop in the renminbi would weigh on Japan's yen especially. That's not necessarily bad news for Governor Kazuo Ueda.

Currency drop worsens Moscow’s stagflation fears

29 Nov 2024

The Russian central bank may have to hike interest rates from an already high 21% after this week’s rouble meltdown, caused by US sanctions on a key bank. But its real problem is that inflation keeps rising as the economy is slowing, deepening fears of a crash-landing.

There are few good ways out of China’s stock slump

21 Nov 2024

Despite a recent bounce driven by stimulus hopes, the country’s benchmark equity index is down by nearly a third in the past three-and-a-half years. Though valuations look cheap, Donald Trump’s return to the White House could lead to even worse outcomes for investors.

Bitcoin’s $100,000 moment will be a perfect storm

21 Nov 2024

The digital currency’s price is inching towards the six-figure threshold. Between buying from crypto whale MicroStrategy, the launch of options contracts on spot ETFs, and potentially looser regulations under President-elect Donald Trump, the euphoria is becoming self-sustaining.

Beijing can slow, not stop, the yuan’s fall

18 Nov 2024

China hawks are headed for the White House, upping the odds of more tariffs on the $18 trln economy. That's expected to add downward pressure on the renminbi. Regulators have plenty of tools, but drawing a line in the sand would only provide a target for traders to challenge.

Why stablecoins will entrench dollar’s supremacy

25 Oct 2024

A Russian plan to break the greenback’s grip met a cool reception at the BRICS summit in Kazan. The more important monetary news was Stripe’s $1 bln acquisition of digital-currency group Bridge. Dollar-pegged blockchain currency will keep Uncle Sam on top of the monetary order.