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As gold and oil prices climb, currencies of commodities exporting countries like Canada and Australia should rise as well (whether central banks there like it or not and there are mixed opinions on that front).
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The currencies of commodity producers, he says, should follow commodity prices.
The currencies of commodity exporters have been burnt, while those of big importers have sizzled.
The currencies of commodity-driven economies like Australia, Canada and New Zealand have also suffered.
Other insights from the latest index are that the currencies of commodity exporters are those that have lost the most ground relative to the dollar – so the Brazilian real, Russian rouble and Norwegian kroner have all weakened.
Analysts have cut their 2011 profits forecasts by 6.6% over the past three months and knocked 8.3% off their 2012 numbers, says Andrew Lapthorne at Société Générale.Other favourites in "risk on" markets are industrial commodities like oil and copper and the currencies of commodity producers such as Canada and Australia.
In this third group, the banks are short of dollars even if the country as a whole is not.Long before Lehman Brothers went bankrupt in mid-September, prompting the world's money markets to seize up, the currencies of commodity exporters had already started to tumble.
Those who would like to do so by investing in the currencies of commodities-exporting countries should consider the CurrencyShares Australian Dollar Trust.
As the U.S. has run up ever growing deficits this decade, gold prices have gone up fivefold, up at $1,041 at noon Wednesday, while the U.S. dollar has gotten battered by political rumors strengthening the currencies of commodities-rich countries.
A handful of other countries, from Chile and Brazil in the emerging world to Australia in the rich world, share the debilitating status of having a commodities bent, a biggish current-account deficit and a wilting currency.The currencies of some commodity importers are also wobbling.
The currencies of the commodity markets, etc.
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