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Stock impact report

Emerging Markets Battle Weak Currencies as Dollar Crushes Peers [BNN Bloomberg (Canada)]

HSBC Holdings, plc. (HSBC) 
US:NYSE Investor Relations: hsbc.com/investor-relations
Company Research Source: BNN Bloomberg
In South Korea, Thailand and Poland, officials have said they are closely monitoring for currency volatility or spelled out they'll step in if needed. Indonesia has gone a step further by selling dollars and China has repeatedly pushed back against depreciation, implying to traders that the yuan's stability is key. Faster-than-expected US inflation data last week damped bets on Federal Reserve interest-rate cuts, suggesting the battle against dollar strength isn't going to end anytime soon. Increasing tensions in the Middle East between Israel and Iran risk creating a fresh surge in demand for the greenback as a haven. “Right now, we do see lots of verbal intervention from different central banks,” said Marcella Chow, global market strategist at JPMorgan Asset Management in Hong Kong. Given the Fed seems unlikely to ease policy soon, “there might be more weakening with regards to Asian currencies and that may suggest that there might be more verbal intervention that's needed,” sh Show less Read more
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