The Federal Reserve’s surprise decision not to taper its asset purchases has boosted EM currencies, but the knock to the central bank’s credibility might imply that a more violent market reaction has been stored up for the eventual normalization of US monetary policy.

Famed for his tough approach to regulation, Czech central bank head Miroslav Singer now has his sights set on currency market intervention to reflate the country’s flagging economy. He talks to Euromoney about the limitations of fiscal policy, the prospects for Czech adoption of the euro, and the dangers of regulatory integration.

The decision by Larry Summers to withdraw his candidacy for the Federal Reserve chair saw the dollar fall sharply, but the currency could benefit over the longer term.

Threat of military action adds uncertainty; central bank inactivity supporting volatility.

Oil and gold imports problematic for reserves; The worst-performing EM currency this year

The international role of the euro has shrunk to the lowest level since the creation of the single currency, according to the Bank for International Settlements (BIS).

Tullett Prebon Information has launched a new pricing service for Chinese bonds, highlighting the need for accessible knowledge of the burgeoning bond market in China.

While foreign exchange swaps and forwards escaped the trading and clearing requirements of the Commodity Exchange Act, many FX instruments did not – and one area that has received less attention than most is the requirement for trades in those securities to be reported in real time.

Hopes are growing that concerted Brics policy action – with the creation of a $100 billion swap fund – and bargain-hunting will help engineer a rebound in sentiment towards EM currencies.

The preferred method for playing Chinese credit markets remains the dim sum bond market, say analysts, as China’s expansion of access to its onshore market is met with a cool reception by foreign investors.

It has been a horrible few months for emerging market (EM) currencies, with foreign exchange investors looking to exit a broad range of exposures from Brazil to Indonesia. However, a closer examination of the EM landscape reveals that among the detritus are currencies that look set to outperform.

Final rules on margin requirements for non-centrally cleared derivatives are expected in the coming days and are likely to include an exemption for foreign exchange swaps and forwards, analysts say. However, lobbying efforts are likely to swiftly move on to whether FX derivatives should be mandated for clearing.

The Indian rupee is likely to remain under pressure despite central bank efforts to slash spot dollar demand, including lending dollars from its reserves to state-run oil companies, but analysts are split over its prospects for the rest of the year.

Rising US treasury yields could create a vicious spiral for emerging market FX as central banks deplete their reserves to defend their currencies.

The Australian dollar looks set to come under further pressure, potentially making it the largest casualty among G10 currencies as the sell-off in emerging market Asian FX continues.

The prospect of a great rotation from bonds into equities promises a regime shift in the FX market that throws up opportunities for currency investors.

The move from the Bank of England to join the Federal Reserve in linking its monetary policy stance to the unemployment rate has boosted the pound; it might continue to do so as investors adjust to the new regime.

Price action in the past few months has been frustrating for yen bears, but the downtrend in the Japanese currency is likely to recapture some of its momentum over the medium term.

EM FX reserves have grown to record levels in recent years, but a reversal of the accumulation trend threatens to further exacerbate weakness in local currencies that has been seen during the past few months.

Gulf states plug national reserves; stock market remains in limbo.

FX trading volumes surged to record levels in April, according to semi-annual surveys from the world’s largest central banks, as the yen market sparked back to life.

The expectation for the normalization of monetary policies in advanced economies has been one of the most important drivers in the FX market in recent months and has thrown up a challenge for currency investors.

The Hungarian forint is set to come under pressure as the country’s government prepares to mitigate the effect of FX loans taken on ahead of the financial crisis in a bid to garner popularity before next year’s elections.

EM FX is less undervalued than it has been for a decade despite the sharp falls in high-yielding currencies, such as the Turkish lira, Indian rupee and South African rand, in recent months.

Equity-style trading is likely in the FX market by 2017, allowing all participants unrestricted access to currency liquidity – a shift that will present challenges to many banks participating in the world’s largest financial market.

US dollar strengthening in anticipation of QE tapering; in response, emerging market assets have repriced.

Euromoney’s debate involving leading executives in Asian financial services throws light on the Chinese currency’s progress to full international status and the likely developments that will hinder and advance the process.

Investors looking to insure against the probability of a hard landing in China should look to the currency market.

Rarely have two decisions to leave interest rates on hold had such an impact on the currency market, but the Bank of England (BoE) and the European Central Bank (ECB) managed to put heavy pressure on the pound and the euro after their policy meetings on Thursday.

Figures from the IMF show that the world’s reserve managers have built up their holdings in the yen to levels last seen before the collapse of Lehman Brothers.