| The collapse of the British pound this year (22 per cent versus the euro) has thrown an improvised explosive device into the currency wars and complicated what has become a fairly cosy world of co-ordinated monetary policy.
In Australia, it’s combining with the steadily devaluing yuan to put pressure on the incoming RBA governor, Philip Lowe, to loosen policy some more and stop the Aussie from rising. The trade-weighted index is back above 65, back at the April 2016 peak and near an 18-month high — up nearly 7 per cent in five months — while against the US dollar it’s still below the April high of US78c........................................Full Article: Source
|