Currency: Fed Rate Cuts To Strengthen Yuan By 10%, Pushing Dollar Down
The implications of the federal rate cut have already started to show their ripple effect. In his recent address, Jerome Powell, the Federal Reserve chair, shared his stance on the latest rate cut expectations, adding how a policy change is already under consideration. Powell’s remark has potentially caused a domino effect on the current US economy, with investors and organizations bracing for a headstrong economic collision that may either break or make the economy’s robustness. The new currency dynamics are also at play, which may change the course of the USD in the long haul. Also Read: Investors Pivot To ASEAN Amid Weak US Data Assumptions How US Interest Rates Cut May Strengthen Yuan? Source: Gina Sanders / Fotolia via Wodicka According to Bloomberg, Chinese companies may look forward to selling their $1 trillion worth of dollar-denominated assets once the rate cut expectations are finalized. This phenomenon can trigger an “avalanche” in space, amping the price of yuan by at least...