Asian FX

By Mitul Kotecha of Crédit Agricole.

It was not so long ago when expectations for the Chinese currency, the renminbi, had shifted to a prolonged period of weakness against the US dollar. This corresponded with the view that the Chinese authorities would use their currency as a tool to help cushion the impact of an exports slowdown.

All of this changed in late July from when the RMB began a multi-month period of appreciation at a pace that has astounded many analysts. Continue reading »