Yen to Modestly Appreciate Against the Dollar, StanChart's Zhang Says

The video discusses the US Treasury's currency manipulation watch list, highlighting the criteria for inclusion and the impact on Asian currencies, particularly the Thai baht. It examines China's strategy to defend the yuan and the potential for increased US-China trade tensions. The performance of Asian currencies, including the Japanese yen and Thai baht, is also analyzed, with a focus on safe haven inflows and real yield differentials.

Which countries were recently added to the US Treasury's watch list of currency manipulators?

• China, Thailand, and Indonesia

• Philippines, Taiwan, and Hong Kong

• Vietnam, Singapore, and Malaysia

• India, Japan, and South Korea

What is one of the criteria used by the US Treasury to label a country as a currency manipulator?

• High inflation rate

• High unemployment rate

• Persistent one-way FX intervention

• Low GDP growth

What is China's strategy to prevent the yuan from breaching a certain level?

• Increasing foreign investments

• Reducing exports

• Engaging in intervention policies

• Increasing interest rates

What could happen if the US Treasury continues to tweak the criteria for currency manipulation?

• Trade tensions will decrease

• The US dollar will depreciate

• China will increase its exports

• China might be labeled as a currency manipulator

What is the potential extreme scenario if China is labeled as a currency manipulator?

• China will decrease its foreign reserves

• China will allow the USD/CNY to go beyond seven

• China will increase its interest rates

• China will increase tariffs on US goods

Which Asian currency has shown appreciation due to safe-haven inflows?

• Japanese Yen

• Thai Baht

• Indian Rupee

• South Korean Won

What factor is contributing to the support of the Japanese yen against the dollar?

• Widening trade deficit

• Narrowing real yield differentials

• Increasing inflation

• Rising unemployment