StanChart's Devesh Sees a Good Environment for Emerging Market Currencies

The video discusses the recent trends in US yields, global inflation, and monetary policy, highlighting the impact on emerging market currencies. It analyzes the Japanese yen, focusing on real yield differentials between the US and Japan, and predicts potential movements in the currency. The discussion then shifts to the Chinese yuan, examining factors such as economic growth, current account changes, and portfolio flows, with an emphasis on the authorities' intent to maintain CNY stability amid ongoing US-China trade discussions.

What recent trend in US yields is highlighted in the discussion?

• US yields have significantly increased.

• US yields have remained stable.

• US yields have peaked and started to drop.

• US yields have been unpredictable.

Which country's monetary policy tightening is specifically mentioned as an example?

• South Africa

• Brazil

• Indonesia

• India

What is the main reason for the preference for a lower Dollar-Yen rate?

• Japanese inflation rates

• US economic growth

• Trade agreements

• Real yield differential between US and Japan

What is the expected target for the Chinese yuan by the end of the year?

• 6.80

• 6.75

• 6.65

• 6.50

What factor is expected to support the Chinese yuan despite a current account deficit?

• High domestic consumption

• Rising interest rates

• Strong portfolio inflows

• Increased exports