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.

Discuss the implications of the interest rate differentials between the US and Japan.

What role do portfolio flows into China play in the context of the CNY's stability?