Perception about divergence in monetary policies driving dollar index
In an recent interview with The Economic Times Now, Klaus Baader, Head of Research for Asia and Chief Economist for Asia Pacific at Societe Generale, talks about the reasons that have pushed the dollar index above 100 level.
''The monetary policy in the US has a lot to do with it. There has been a lot of shift in expectations about when the Federal Reserve is going to raise rates. Now it looks as if markets are discounting a very high probability that a move is imminent. I think that the other side of whatever currency pair you are looking at it is also important. So far, the European Central Bank (ECB) is sending very clear signals that it will probably increase the degree of monetary accommodation.''
Klaus Baader, Head of Research for Asia and Chief Economist for Asia Pacific at Societe Generale
To read the article, please visit: www.indiatimes.com