Forex Investment and Currency Trading

Following last week’s move of SBV to widen the dong trading band  to +/-1% but prohibiting banks from using third party currency, the onshore interbank FX Market was temporarily frozen.
However, over the last week : 1) SBV re-peged the official rate 0.4% weaker and combined with the widening of the band, the official ceiling USDVND [...]

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Hawkish BoT comments in the past week suggest the central bank is now ready to raise interest rates on July 16. However, near-term concerns will likely overwhelm shifting rate expectations, extending baht weakness into 3Q08. The USD/THB forecast is raised to 33.50 for 3Q08 from 31.50. Political risk would see an upward skew to this forecast in [...]

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USD-CNY
Spot had a central parity fixing of 6.9372 vs. Friday’s close of 6.9420. In May, the Chinese yuan (CNY) gained 0.66% against the USD, faster than the 0.35% appreciation in April, but much slower than the 4.2% appreciation in Q1. Market participants were concerned in April and May that the Chinese authorities may have changed [...]

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