t is a big day for currencies because after a long hiatus, you are probably going to see a rate hike coming in from one of the Organization of Economic Co-operation and Development (OECD) Central Bank.
Here is a verbatim transcript of Latha Venkatesh’s comments on CNBC-TV18. Also watch the accompanying video.
It is a big day for currencies because after a long hiatus, you are probably going to see a rate hike coming in from one of the Organization of Economic Co-operation and Development (OECD) Central Bank.
The European Central Bank in all probability will hike its interest rates later today. That’s momentous because it has been such a long lean period for those countries that even this is faced with a lot of opposition.
There are almost comments in the press calling the ECB a German Central Bank as if the policy is only designed to suite Germany’s inflation fears and is ignoring the problems that a rate hike will bring to other countries peripherals the Portugal, Ireland, Greece and Spain (PIGS) countries where they will find it even more difficult to sell their paper or will have to give more yields.
In any case, the euro is rallying since then. We have seen a lot of Asian currencies also rallying on the back of a strong euro performance and dollar weakness has obviously helped asset classes, all risky asset classes
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