China likely to allow RMB appreciation - Aberdeen

Aberdeen's Adam McCabe believes China will allow the renminbi to appreciate in a bid to support domestic demand.

The group's Singapore-based head of Asian currency claims the era of Asian central banks running weak currencies is over due to the region's sensitivity to demand in the developed world. McCabe says the extraordinary policy stimulus seen in China is in the process of being normalised, leading it and other Asian central banks to allow for greater currency appreciation. "Asian economies had become too sensitive on final demand in the developed economies and policy makers fully appreciate the need to support and foster domestic demand as a key pillar for long-term economic growth," McCab...