Rate Risks Cause the Asian Forex Exchange Market to Take a Fall

On the Thursday forex trading session, the prices of the Asian currencies seem to have taken a fall. The data shows that the fall is due to the announcement made by the US Feds surrounding the interest rates.

The US Feds Want to Hike Interest Rates

The US Federal Reserve announced on Thursday that they plan on keep going with their interest hike program. This way, they will be in a better position to fight off the inflation hikes.

As the investors from around the world have started to digest US Feds’ decision, the situation has gone south for the Asian currencies.

The Chinese Yuan’s Crisis

Among the Asian currencies, the currency taking the most amount of damage is the Chinese yuan. However, the Chinese yuan has another major factor negatively impacting its market value.

The factor that is impacting the Chinese yuan in a negative manner is the real estate crisis the country is currently going through.

It has also added up negatively to the Chinese economy, which has impacted the trading value of the Chinese yuan.

As the real estate crisis keeps rising, the level of concern is also rising among economists and analysts. They are concerned about the economy of Chinese and how badly the real estate crisis is going to impact its growth.

Performance of the Chinese Yuan

The data from the forex market on Thursday shows that the value of the Chinese yuan dropped by 0.2%. As the price has dropped by 0.2%, its value has come all the way down to 6.7912.

For now, the value of the yuan is experiencing a three-month low. This is because the investors are extremely worried and skeptical about going in and making investments to support the yuan.

The current economic condition of China and its weak growth guidance have the investors worried. Therefore, they won’t be making much of an effort, for now, to support the yuan.

Country Garden Holdings Company Ltd.’s Profit Warning

The Country Garden Holdings Company Ltd recently posted a warning for the real estate investment community.

The major real estate company reportedly warned the investors about the profits and their shrinkage. This had the entire real estate community go on a back foot and not make investments at all.

This has ended up slowing down the growth of the Chinese growth and has added a negative factor to it.

Performance of other Asian Currencies

Coming to other major currencies in Asia, the Japanese yen’s value has remained neutral and unchanged versus the greenback.

However, the trading value of the South Korean won has experienced a 0.3% loss. Then there is the Indian Rupee which has lost 0.4% versus the USD.

Leave a Reply

Your email address will not be published.


What is Copy Trade and How It Works?

Copy Trade Intro Copy trade or copy trading is a type of trading in which one trader (the “follower”) automatically copies the trades of another trader (the “leader”). This is done through a copy trading platform, which connects the follower and leader and allows the follower to automatically copy the leader’s trades in real-time. How […]

Coins Capital Review, Coins-Capital.com – Is Coins Capital Scam Or Legitimate?

Coins Capital Trading Platform Rating 4.3 Summary Read our Coins Capital review at FStar Capital Forex and Cryptocurrency Trading blog, find the answer to your question “is Coins Capital scam or legit” and much more! https://coins-capital.com/ Coins Capital Review You have been thinking for a long time if trading is for you. You have finally […]

AI Center Indicts ChatGPT Developer of Trade Law Violations: Claims Bias & Deception

The organization alleges that the creator of ChatGPT has violated Section 5 of the Federal Trade Commission Act with the release of GPT-4. This section of the act prohibits any practices or acts considered deceptive or unfair and that affect commerce. CAIDP has complained to the US Federal Trade Commission, intending to prevent the distribution […]

Investors Excited As XRP Market Capitalization Hits $20 Billion

It’s been wide jubilation today after XRP investors heard the announcement that the market capitalization has surged to $20 billion. XRP: a cryptocurrency developed and managed by Ripple, a San Francisco, United States, distributed data company. It was gathered that the coin itself responded to this development through a climb in price – it was […]