Japanese interest rates continue to price in tightening from the Bank of Japan. We think it's a bit premature, but the currency market is taking notice.
We have been witnessing how the currency move is boosting exporters' profits. Buying momentum is quite strong, stimulated by robust earnings.
Until you get tighter monetary policy in Indonesia, the currency will remain under downward pressure. Weakness in the currency and the rally in oil over the past couple of weeks have just compounded the inflationary expectations.
Signs of slowing growth and wages moving sideways rather than picking up, and of course the currency showing some signs of life, suggest that the Reserve Bank has probably administered enough monetary medicine for the time being.
Short term, it is good to buy the currency on dips.
Simply resorting to currency appreciation cannot solve the problem. This has been illustrated by Japan's case.
Since China moved on the currency last July, the economy has been charging along. China should feel comfortable and confident in driving through reforms. There has been no economic or financial turbulence.
She had very little knowledge of what was happening around the village she was supposed to be living in, didn't know the currency used,
The data is positive for the euro, being one of the only data releases that the currency reacts to.
The data is important, but it will take a back seat to concerns about currency devaluations and recessions.