Insights

China has recently taken the first step towards the internationalization of its currency, renminbi.

With the outbreak of the global financial crisis last year, risk averse investors have been buying risk-haven currencies such as USD and JPY against other major and emerging market currencies.

Since this past summer, USD has rebounded forcefully from a seven-year bear cycle that started in Q1 2002. The global financial crisis has created massive demand for the USD that propelled the currency to stage a dramatic comeback.