Published at 00:22 (GMT) 1 Sep
Just for info; given recent sharp falls in EM currencies, following CNY deval; VND, KZT moves.
FT: Weakness in emerging market currencies is hurting global trade by reducing imports without any benefit to export volumes, according to FT research based on more than 100 countries.
The findings suggest any currency war between developing nations is likely to be even more damaging than previously thought, leading to a reduction in global trade and possibly economic growth, rather than just reapportioning a fixed level of trade between "winners" and "losers".
Since June 2014, the currencies of Russia, Colombia, Brazil, Turkey, Mexico and Chile have fallen by between 20-50% against USD, while MYR and IDR are at their weakest since the Asian financial crisis of 1998.
On FX, some focus on the above FT research, as markets remain nervous about more weakness in EM currencies. After PBoC CNY reval and series of PBoC rate cuts to support the economy, and stocks. Further compounded by Fed tightening bias as Fed Vice Chair Stanley Fischer signals Fed will hike rates soon. USD/CNY eye PBoC Fixing today. Also with pressure on RUB. USD/RUB last levels seen at 64.249 - key level 70.00/
USD INDEX at 95.820 - supported on dips on hawkish Fed comments. Support at 95.50/95.00. Eye 96.50/97.00.
USD/JPY a tad lower at 120.98-00, from NY close of 121.22, weighed by lower stocks. Nikkei -1.29%, Dow -0.69%. USD/JPY offers at 121.30-50, good bids at 120.70=80. Cross/JPY vulnerable to downside on risk aversion, China stocks fall.
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