The problems of the Chinese development company Evergrande are driven by the foreign exchange market. While some established currencies declined slightly, they strengthened those that were more sensitive to risk. Among them is the Australian dollar.
In global financial markets, there are fears that the problems of the Chinese development company Evergrande could spread beyond China’s borders. Investors therefore began to spill their money into other currencies, which was mainly earned by the Australian dollar and the Norwegian krone. Both currencies strengthened by less than half a percent. On the contrary, the Japanese yen came under pressure.
However, a slight increase in interest rates on US government bonds contributed to the slight weakening of the yen, which attracted the attention of Japanese investors, among others. In addition, there are growing expectations that the Federal Reserve (US Federal Reserve) will cut back on quantitative easing earlier than originally planned.
The exchange rate of the euro against a basket of major world currencies has hardly changed, although the Social Democrats have won the German parliamentary elections and defeated their current CDU / CSU government partners. The market thus practically acknowledged the market.
