The U.S. dollar has staged a monster rally (in currency trader terms), as China tightening fears, which could slow down the nation's rabid growth, shook Asian markets Wednesday.
What's all the commotion? This:
WSJ: Bank Of China Ltd. has ordered its credit officials to halt any new yuan loans due to overly fast lending growth so far in January, a person familiar with the situation said Wednesday. The headquarters of the state-controlled lender has issued a notice to all of its branches to stop issuing new yuan loans and also curb foreign-currency denominated new loans, said the person, adding that the bank didn't say in the notice when new yuan loans will resume.
It's not exactly a subtle way to cool down loan growth. The euro has been slammed overnight:
Even 'commodity currencies' such as the Australian dollar have been hit:
Asian markets took it on the nose, with Shanghai's CSI 300 walloped over 3%. Meanwhile U.S index futures are in the red.
Gold? 'Misbehaving' as usual -- falling on increased negative prospects for economic growth as investors seek safety in, yes, dollars.
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See Also:
- The Dollar Carry Trade Is Collapsing
- Morgan Stanley: The Dollar Will Rally Because Europe And Japan Are Such A Disaster
- Dollar Freak-Outs Happen Every Ten Years They're Always Overdone
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