Against a backdrop of turbulence in financial markets, rising oil prices and foreign currency gyrations it begins to look as if the honeymoon period of low interest rates and cheap imports from Asian suppliers may be giving way to a painful readjustment of relationships.
India is suffering the first pangs of pain from rupee strength against a weakening US dollar, which remarkably is trading below parity with the Canadian dollar. It's only a matter of time before the pressure on China to revalue the renmimbi becomes too great as currency traders pile in.
Meanwhile, the euro has found a new status as a reserve currency, hurting European manufacturers, France's in particular. With the British pound caught in the crossfire between a strong euro and a weak dollar, so far the UK has weathered the storm -- but be prepared to batten down the hatches and hope that politicians, who have never had it so good until now, don't play fast and loose with the economy in their partisan interests.
Keywords : Sector analysis, Financial, Commodities, Lifescience markets, Manufacturing, Business
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