TTD: Heading Into Another Storm

The Trinidad and Tobago (T&T) dollar has come under some renewed downside pressure of late, brushing up against the lower end of its TTD6.2000-6.3000/US$ trading range, of the central bank's tightly managed float. Indeed, at the time of writing the unit is looking to push back to its recent low of TTD6.3600/US$ hit in April at the height of sovereign credit fears in Europe and a concomitant flight to safety by global investors. Although we believe that global financial market volatility will likely remain a key factor in the short term, we note that stronger energy prices will keep downside pressure on the T&T dollar limited.

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