What’s the connection between dollars and commodities? The key lies in the U.S. dollar’s status as the global reserve currency.
Like many emerging markets, South Africa is struggling to find an equilibrium between taming inflation and bolstering growth. After the latest inflation numbers came in at 6.3%, higher than the central bank’s target range, pundits have started to question the appropriateness of the Reserve Bank’s price stability mandate with some calling for a constitutional amendment to scrap said mandate.
Gold is back in focus after the Federal Reserve announced it will be extending its pledge to keep interest rates at exceptionally low levels all the way to the end of 2014.
Now that inflation is firmly under wraps in China, Beijing has more room than ever to make liquidity available and avoid a “hard landing” scenario for its banks, real estate or factories.
Turkey’s bold move a month ago to cut interest rates in the face of a growing economy, may be attracting more attention from bankers in other emerging markets who are concerned the slowdown in the developed world will spread to their shores.
Brazil will protect itself from any inflation and manipulation that result as troubled economies issue reserve currencies to preserve market share, President Dilma Rousseff said.
India’s central bank raised its benchmark interest rate for the 12th time since March 2010 in an effort to bring down its inflation rate.
The Reserve Bank of India may raise interest rates another 25 basis points on Friday after the latest data on inflation showed no letup in price increases for Asia’s third-largest economy.
The People’s Bank of China says cutting the rate of inflation remains its top priority, even after price increases eased slightly in August.
The decline in the dollar and the credit downgrade of the United States is re-igniting a perennial argument in the Persian Gulf: Should the oil-rich Gulf states break their currencies’ fixed peg to the U.S. dollar?