Hong Kong (AFP) - The dollar edged closer towards parity with the euro Thursday after the European Central Bank kicked off its stimulus programme this week, while Asian equity markets recovered slightly from a recent sell-off.
The economic clout of the USA has been huge since the end of World War II. The relative position has been decreasing recently with the rise of not only Europe and Japan but Korea, China, India, Brazil and many more. This means the risks to the USA of failing to deal with perennial problems (the most costly but not most effective health care system, spending beyond our means, weak diplomacy, excessive legal costs, poor management practices…).
Equities held up well in the first trading week of the year. This is particularly noteworthy, considering the euro broke down to a new low with sentiment for Europe’s debt situation remaining very low.
South Korea's central bank Friday unexpectedly raised the key interest rate from a record low in a bid to restrain inflation as Asia's fourth largest economy posts a solid recovery.Contrary to widespread predictions, Bank of Korea governor Kim Choong-Soo and other policymakers increased the benchmark seven-day repo rate for July from 2 percent to 2.25 percent -- the first rise since August 2008.As the global financial crisis hit, the central bank cut rates by a total of 325 basis points between October 2008 and February 2009.