Issuer:HSBC Group

Language:English

50 Pages

Format:PDF

Snapshot:The FX market has changed since AUG07 with some traditional relationships shifted in nature. The major beneficiaries of higher commodity prices have been CAD, AUD and NOK, and the main loser has been the dollar. While the authorities may slow the pace of RMB appreciation in the short-term, this is not a sustainable policy. The RMB is believed to be undervalued and will appreciate at a pace of no lower than 5% p.a. in the medium-term.