In China, October first is a holiday marking the anniversary of the Communist takeover of the country. Its currency, the renminbi (RMB), will join the US dollar, the Japanese yen, the British pound, and the euro as a reserve currency for the IMF. “It’s happening before the RMB actually becomes a major reserve currency,” said Eswad Presad, professor at Cornell and former head of the IMF’s China division.
Traders seem encouraged by the recent bout of Chinese economic data. They may be wrong.
The strong U.S. Dollar has been seen as the villain of a stock market rally. But Wells Fargo equity strategist Gina Martin Adams says that the strong dollar is good for the stock market.