Forex Blog: Currency Trading News & Analysis.

October 8th 2007

IMF Comments on Currencies

Rodrigo Rato, outgoing president of the International Monetary Fund ("IMF") recently offered his two cents on developments in the forex markets.  He began by cautioning against "excessive volatility," or the rapid fluctuations which have recently afflicted many of the world’s major currencies.  Next, he suggested that the Dollar has moved from being massively overvalued to being massively undervalued. In other words, it is his assessment that the Dollar has depreciated far too rapidly over the last few years.  Finally, he suggested that a tightening of Japanese monetary policy would be in the best interest of global economic stability.  As Rato is no doubt aware, higher Japanese interest rates would put an end to the carry trade, and drive the Yen upwards in value.  The Financial Times reports:

The outgoing IMF chief also hints at unease about Japan’s yen, which remains weak in part because of ultra-low interest rates. “Normalisation of monetary policy in Japan is an important medium-term objective.”

Read More: Rato speaks his mind on dollar

SocialTwist Tell-a-Friend
Posted by Adam Kritzer | in Politics & Policy | No Comments »

Sponsored Offers

FREE Daily Email Updates

Enter your email address:

Delivered by FeedBurner

Have Questions? Want to Share Your Review?

Be heard. Please share your reviews today!

Neighboring Posts

© 2004 - 2024 Forex Currency charts © their sources. While we aim to analyze and try to forceast the forex markets, none of what we publish should be taken as personalized investment advice. Forex exchange rates depend on many factors like monetary policy, currency inflation, and geo-political risks that may not be forseen. Forex trading & investing involves a significant risk of loss.