IdahoUSA: ALWAYS BELIEVE SOMETHING WONDERFUL IS GOING TO HAPPEN …EVEN WITH ALL THE UPS AND DOWNS ….NEVER TAKE A DAY FOR GRANTED. ….SMILE ….CHERISH THE LITTLE THINGS AND REMEMBER TO HUG THE ONES YOU LOVE.
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Tishwash: so here is a rare instance where they are saying buy the currency not invest in the country I thought this was interesting
Experts Say Buy Currencies Of Emerging Economies Against USD
BY EDWARD ORDWAY ON JULY 28, 2019
On July 8, analysts stated that investors should invest in new market currencies instead of U.S. dollar. The announcement came as the American Federal Reserve is said to be considering cutting the interest rates of U.S. dollars. Due to this, dollar investments will give less interest rate, which will lead to a weak economy against those countries (also including developing ones) with high interest currencies.
The American chief investment officer, Mike Ryan said that as of the present situation, American dollar is leading with the highest value among the developing market currencies. He further stated that there are other market currencies that look more interesting to the Fed, while they plan to cut American rates instead of raising them. Although, it does not mean that the U.S. dollar is losing its value; the central banks of other developed countries are also expecting to mount the rate policy.
The head of Asia research, ANZ Bank, Khoon Goh agreed with the above view by saying that they have New Zealand and Australian central banks so the current situation shows that ‘carry trades’ will be back in trend. ‘Carry trade’ is a strategy where investors purchase assets with currency of high interest rates by loaning currency of lower interest rates. This way, they can earn more on their investments of different currency and pay less amount of interest to another currency that is loaned.
Goh informed that ANZ stands in favor of some Asian currencies like the Indonesian rupiah and the Indian rupee. The standard interest rates in Indonesia and India are 6% and 5.75%; and falls between 2.25% to 2.5% when compared to Fed’s target.
The U.S. dollar index situation seems to be quite unclear but the countries with high-yield currencies that have a scope of growth are more resolved and clear. link
