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Market Tips: Diversification Debate Pressures Dollar

The yen gained this week as the dollar's status as a global reserve currency came under scrutiny as China called for reform of the reserve currency system at a meeting of world leaders on Thursday. Experts tell CNBC the diversification debate will put pressure on the dollar in the long term.

The Diversification Debate

China has called for diversification in the reserve currency system. Sharada Selvanathan, currency strategist at BNP Paribas, says the dollar is likely to depreciate in the long-term but it is not under pressure now despite those comments.

China's Currency Calls to Hurt Dollar 'Over Time'

China calls for diversification in the reserve currency system at the G8 summit. Dariusz Kowalczyk, chief investment strategist at SJS Markets says continued pressure on replacing the dollar will negatively impact the greenback over time. But he sees the dollar rising to 102 yen by the end of the year.

Expanding the Yuan's Role

China is trying to internationalize its currency, says Qu Hong Bin, senior economist at HSBC Global Markets. He assesses the impact and the challenges as Beijing kick-starts the process by focusing on expanding the use of the yuan in trade settlements.

Expect Aussie Dollar to Weaken in Q3

The Aussie-dollar could test as low as $0.73 around the August-September period, foresees Robert Rennie, currency strategist at Westpac Bank.

More Upside for Hong Kong, China

Expect more upside for the Hong Kong and China markets, says Lorraine Tan, VP of Asia equity research at Standard & Poor's. She tells CNBC why she has raised her target for the 2 markets by 10%.

Oil Prices to Bottom Around $50/bbl

Oil prices will probably bottom around $50 a barrel before heading significantly higher, predicts John Kilduff, senior VP & energy analyst at MF Global.

Goldman Sachs Gets an Upgrade

John Carey, Executive Vice President and Portfolio Manager at Pioneer Investments, thinks Goldman Sachs is an example of a financial institution that is good shape — there are very few banks left in this position.

Indian Tech Sector Outlook Still Healthy

Nitin Bhat, senior vice president for ICT practice at Frost and Sullivan, sees short-term pressure on Infosys and he expects its revenue to go down. He also tells CNBC that the mid- to long-term outlook for India's tech sector remains healthy but firms need to expand their client base.

Stock Market Heading Lower

The stock market correction has further to run, but it's unclear whether indexes will revisit the March lows, Simon Goodfellow from ING Wholesale Banking told CNBC. "We're going down in the short term," he added.

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