USD causes problems for Chinese and Japanese FX – ING
|Dollar strength is causing some problems, especially for Japan, China and many emerging markets, ING’s FX analysts note.
Non-USD currencies to remain under pressure this year
“USD/JPY is now close to the 158/160 area, where Japanese authorities sold $35bn in July last year. Chinese authorities continue to resist renminbi depreciation, and in Brazil, the local bank has been drawn into a heavy bout of FX intervention too.”
“Unless US trading partners are prepared to offer some sizable fiscal stimulus to support domestic demand as an offset to a more difficult export environment, expect non-USD currencies to remain under pressure this year.”
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