Investors have lost faith in Brazil, and rightfully so. The currency has lost 36% of its value against the U.S. dollar this year, plunging nearly 7% in the last week alone. Yields on its bond issues are spiking, as investors demand higher and higher rates to loan Brazil or Brazilian companies money. Just six years ago in November 2009, Brazil…
With the markets awash with volatility these past few weeks, everyone is looking around for culprits and for saviors. The global economic recovery is once again faltering, as China’s engine of growth is sputtering and the rest of the world is worried about the consequences. As is becoming the norm in the post 2008 environment, central bankers are at the…
Big Move in China's Yuan Today! Value of the Chinese currency, the yuan, against the US dollar. Source: Bloomberg Global markets woke excited today after China’s central bank surprised the world by “forcing” a 1.9% weakening of its currency. Most currencies in the world move in a relatively free fashion, i.e. without significant intervention by a country’s central bank. A 2% one-day…