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Analysis-Why China's neighbours may want currency deals with Trump

Reuters
Summary
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77% Informative

A stronger currency has historically meant a competitive disadvantage for Asian exporters.

Revaluation may now be the least costly bargaining chip in scramble for favourable trading terms with U.S. Trump's April 2 reciprocal tariffs, ranging from 25% for South Korea to 46% for Vietnam , were suspended for 90 days but could kick in on July 8 , unless deals are struck.

HSBC 's Neumann reckons currency deals will not be ironclad and could at most be broad statements of principles on currency management.

Tohru Sasaki , chief strategist at Fukuoka Financial Group , says any kind of currency accord, similar to the 1985 Plaza Accord to weaken the dollar is unlikely.

VR Score

89

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95

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formal

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English

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53

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short-lived

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