Foreign exchange and investment are surging in New York, and investors are buying homes and apartments, but there’s no sign of a housing bubble.
Bloomberg Businessweek reported on Tuesday that foreign exchange and interest rates fell last week and have not been higher since March, making it unlikely that a bubble will emerge anytime soon.
The benchmark FEDEX rate was down 2.6 percent last week, and it’s down 3.1 percent in the week ended March 25.
Interest rates are expected to remain low until April 5.
Foreign exchange rates, which are used as a benchmark for determining a country’s creditworthiness, fell 1.3 percent to 1.3470 U.S. cents at 12:00 a.m.
New York time.
That’s down 0.7 percent from the same week a year ago.
Bloomberg said foreign exchange trading in the city rose by 5.6 trillion yuan ($71.5 billion) to a record high of 7.1 trillion yuan.
The Chinese market has been the biggest contributor to the rally.
The Shanghai Composite Index of listed companies rose 1.7% on Tuesday to 8,066.07 points.
The Shenzhen Composite Index rose 1% to 6,964.08 points.
“Foreign exchange markets are becoming more robust,” said Anushka Sharma, chief investment officer at London-based investment advisory firm Cotterell Capital.
“The markets are looking for yield and demand, and that is what we are seeing.”
The FEDEMAX index, which is based on foreign exchange transactions, was up 1.1% last week.
The dollar dropped on Tuesday after China devalued its currency to its weakest level since March 2011.
The euro gained 0.9 percent, the Japanese yen fell 0.6% and the Swiss franc rose 0.2%.
China’s yuan was down 1.6%.
Foreign currencies have been a major driver of the gains in the benchmark Chinese yuan, which has climbed by almost 10% in the last two weeks.
A drop in the dollar can have an impact on a countrys export-driven economy.
China devalued the yuan to a fresh record low on Tuesday as the currency gained on demand from foreign investors.
It also tightened controls over foreign investment and the renminbi, the currency used in China.
China has been pushing foreign companies to repatriate their cash abroad as it faces economic stagnation, which it blames on a weak currency and a slowing economy.
The currency dropped by more than 30% in 2014 to a five-year low of 3.0732.
