SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Strategies & Market Trends : Booms, Busts, and Recoveries
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Condor who wrote (54933)10/26/2004 11:57:36 PM
From: Taikun  Read Replies (1) of 74559
 
Condor,

Maybe you can help with this.

I hear Japan is not going to intervene re: Yen strength because a higher Yen helps their purchases of oil and other commodities.

I am wondering if this will become a common theme (I honestly bet on Japanese intervention and liquidated 80% of Yen two weeks ago) where it is more important to lower input costs than ensure the US as an export market. If this is the case, and Japan is representative, then Japan thinks that demand from ex-US nations is strong and that sacrificing US demand may be more important than putting up with high commodity costs because they cannot pass on higher input costs to customers.

In light of possible RMB revaluation, although Jay seems to think ultimately RMB will trade lower (and I agree) mid-term, then also these nations will be able to revalue currencies. Does this not then bode well for US investors in Asia? Since some Asian nations will be more competitive vs China with revaluation (which must be right around the corner) they will be able to book part of the lower input costs of oil etc as profit. Perhaps they will have to lower prices in general and pass on the savings from lower input costs, which means they will book less profits.

I wonder if this is starting to mean 'next leg up' for Japanese and other Asian nations, in particular Taiwan and Korea?

What do you think?

David
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2026 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News