As central banks battle inflation a likely ‘revenge rally’ by the US dollar will give investors pause for thought, writes Giselle Roux.
while the European Central Bank was forceful it had some way to go. Even the Bank of Japan surprised with a reversal of its zero rate policy.
Other models build their valuations on economic data such as trade balances, cyclical influences and current account and fiscal deficits. These are within the acronyms such as REER, BEER and FEER, all looking for an equilibrium/economic/effective exchange rate , while using different approaches.
The key is that this is against the US dollar, which most believe has run its cyclical course and is due to retrace some ground. Against other currencies, the outlook for the Australian dollar is benign. The proviso is from other influences such as political risk aversion and investor flows. By way of example, Japan has been a long-term holder of US dollar debt given it could earn a return compared to its zero rate. That is changing.
United Kingdom Latest News, United Kingdom Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
The octopus sex scandal that rocked the Antarctic | First Dog on the MoonWhy should we care and what business is it of ours anyway?
Read more »
‘It’s a control thing’: why are we so fascinated by super-organised homes?It’s the age of decanting – never before have household perfectionists removed so many things from packages only to put them in other packages. Extreme tidiness is a modern obsession. But is it healthy?
Read more »
Why won’t men stop bullying me?For years, ever since I was at school, men have been mean and cruel to me. How do I make them stop?
Read more »
Why do we leave parks and beaches looking like this on public holidays?Litter left at this Top End creek after an Australia Day party causes 'despair' as locals clean up the mess. Here are some ideas to stop people leaving rubbish at beauty spots, especially on public holidays.
Read more »
Why traditional owners are struggling to survive in this Torres Strait Islands 'paradise'Indigenous families are being forced to leave their archipelago homes amid the soaring cost of living and lack of housing.
Read more »
Why a Swedish town is on the move – one building at a timeThe Arctic town of Kiruna is subsiding and under threat from being swallowed by a vast iron ore mine. But what does its relocation mean for the local Sami reindeer herders?
Read more »