BREAKING: India Just Intervened to Save Its Currency
India just attracted an extraordinary amount of foreign money into its banking system. And yet the rupee is moving back toward its record low. Then there’s Japan. The Bank of Japan just raised its policy rate to the highest since 1995. And yet the yen is approaching 160 per dollar again.
So India attracted dollars and the rupee still fell. Japan raised rates and the yen still fell.
Meanwhile, China has done almost the opposite. And so has CNY.
Eurodollar University's Money & Macro Analysis
#News
Video Summary
AI GeneratedThe video argues that currency values are driven by mechanical dollar demand—primarily for energy imports—rather than interest rate differentials. While Japan and India struggled to support their currencies despite rate hikes, China's yuan remains resilient due to its massive trade surpluses, which create a natural commercial flow of dollars that outweighs domestic economic weakness.