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Instead, all eyes are on currency markets, where the central bank is believed to be selling the won to stop it hitting 1,100 per dollar – a line that may bring pain to an economy riding on tech exports.
Other countries face a similar dilemma. Asia’s quick rebound from the pandemic and higher yields, coupled with a slower pace of investment and imports create a goldilocks-like balance of payments tailwind for currencies.
Authorities in Thailand and China are also actively massaging gains in the baht and yuan. Indonesia and the Philippines have used the opportunity to deliver surprise rate cuts this month.
-UPDATE 1-Thai cenbank announces series of measures to contain baht rise -S.Korea c.bank seen buying dollars to curb won’s gain -FX dealers
5/ A BIT MORE?
Bitcoin has soared more than 150% this year, to within touching distance of the 2017 record highs of around $20,000. Many expect the rally to end in tears, as it did three years ago when bitcoin crashed 50% within a month.
Others differ: Calling it the new gold, Citi analyst Tom Fitzpatrick predicted bitcoin would soar past $300,000 within 12 to 24 months. Bitcoin fans cite improved market infrastructure, a greater mainstream investor presence and better liquidity for why they think this rally has legs.
While central banks are in full money-printing mode, bitcoin supply is capped. But it’s still a volatile, retail-dominated market with patchy regulation and frequent hacks. For now, the bulls appear in command. -Bitcoin is the new gold -Inflation-hedge, risk-on bet: What’s behind bitcoin’s 2020 rally?
(Reporting by Lewis Krauskopf in New York, Dhara Ranasinghe, Tommy Wilkes, Tom Wilson in London and Vidya Ranganathan in Singapore. Compiled by Sujata Rao, edited by Karin Strohecker, Larry King)