If a trader believes that a currency will
appreciate against another currency — for example, the USD against the EUR; they can purchase or go «long» a USD / EUR contract.
how can i protect my self by buying options on the dollar in case
it appreciates against this currency.
We expect that the currencies of economies with relatively strong growth, where policy is likely to be tightened over the short term, should
appreciate against the currencies of the G - 3 (U.S. dollar, euro and Japanese yen), where monetary policy is likely to remain loose over an extended period.»
Not exact matches
But it needs to be viewed in the context of the
currency's relative strength: The yuan was one of few
currencies to have
appreciated against the dollar over the past five years.
The Canadian dollar has
appreciated against the U.S. dollar by an amount similar to that of the
currencies of two major commodity importers, Japan and the euro area (Chart 8).
Their financial challenge has become greater because the U.S. dollar has
appreciated against other
currencies, he added.
But should those
currencies appreciate against the dollar, you'll reap a gain.
Even if China manages to maintain the RMB / $ rate, the
currency of the new reserve provider will
appreciate against the $.
The U.S. dollar
appreciated significantly in anticipation of steady economic growth and rising interest rates in 2014 and 2015, returning 12.8 % and 9.3 % (respectively)
against a trade - weighted basket of international
currencies.
The
currency is one of the few to have
appreciated against the US dollar over the past five years (up 6 percent as of last Thursday), Thomson Reuters data show.
These opposing moves unsettled exchange rates, with the dollar
appreciating against most other
currencies.
Currency Hedges While the U.S. dollar has
appreciated against many global
currencies, we still believe the Swiss franc and Australian dollar are overvalued.
The country's healthy trade surpluses and the Plaza Accord in 1985, which sought to weaken the U.S. dollar
against the Yen and German Deutsche Mark, caused the Yen
currency to
appreciate against other
currencies, which in turn made foreign capital investments relatively inexpensive for Japanese companies.
The dollar has also
appreciated against a number of the other major
currencies, including the pound and Canadian dollar.
During the back test period, Japanese investors saw their local
currency appreciate considerably (over 300 %)
against the USD, while the other 3 investors saw their local
currency fall (between 20 - 40 %)
against the USD.
Between late 1998 and the middle of 1999, the Australian dollar
appreciated by around 6 per cent, both in import - weighted terms and
against the major
currencies, retracing around half of the earlier depreciation.
In particular, the Australian dollar fell to around US63 cents by late August as investors moved out of the
currency into the rapidly
appreciating yen; the bilateral rate
against the yen fell from 82 to 70 yen over the same period.
Accelerated outflows might force China's central bank to push the yuan to
appreciate more strongly
against foreign
currencies, to encourage Chinese investors to keep their money in the country.
China's
currency has
appreciated 25 - 30 percent
against most major
currencies over the last eight years.
While the Australian dollar has
appreciated more than some of these other
currencies, the additional appreciation is not that large (see Graph 24), and, as noted above, the Australian dollar remains below average levels
against currencies such as the euro and yen.
Among the latter were a contraction in international demand for electronics and a loss of competitiveness as
currencies appreciated with the US dollar
against the yen.
In this environment the Australian dollar has
appreciated strongly
against the US dollar and
against currencies of the non-Japan Asian region over the past year, though it has been relatively stable
against other major floating
currencies.
It has fallen only marginally
against the Asian
currencies, however, as a number of Asian central banks have continued to intervene heavily in foreign exchange markets to prevent their
currencies from
appreciating against the US dollar.
At the same time, Asian central banks have continued to intervene heavily in foreign exchange markets to prevent their
currencies from
appreciating against the US dollar.
The
currencies of most other developed countries have also
appreciated substantially
against the US dollar in recent months, as they have generally tended to move in line with the euro.
After the Chinese renminbi
appreciated to its highest level in nearly two years
against the US dollar, the country's central bank eased some restrictions on the
currency, a signal that the Chinese authorities» concerns about capital outflows were easing.
King Dollar has
appreciated against a basket of major
currencies ahead of this afternoon's estimate of first - quarter GDP growth.
But it needs to be viewed in the context of the
currency's relative strength: The yuan was one of few
currencies to have
appreciated against the dollar over the past five years.
Through this relationship one
currency will
appreciate (or strengthen)
against the other, while the other will depreciate (or weaken).
I think the
currency is still highly regarded but the Swiss central bank is participating in the
currency war and has attempted multiple times in the past couple of years to debase its
currency so it does not
appreciate against the euro or dollar.
Thailand had to let its
currency appreciate against the US dollar because of rampant speculation.
So Canadian investors will be exposed to
currency risk with this ETF: if the loonie
appreciates against any of these foreign
currencies, the fund's returns will be lower.
In fact, while our dollar has
appreciated strongly
against the greenback in the past five years, it is trading within a tight range
against other major
currencies.
The SNB had installed that floor in 2011 and communicated to the markets that it will sell Swiss franc in unlimited quantities to ensure the value of the
currency didn't
appreciate beyond 1.2
against the euro.
Therefore, as the U.S. dollar
appreciates against a local emerging market
currency the debt service costs rise and make a risky asset even more risky.
If the U.S. dollar
appreciated against our loonie, then the investor would benefit not only from any increase in value in the individual stocks, but the U.S.
currency appreciation as well.
During the back test period, Japanese investors saw their local
currency appreciate considerably (over 300 %)
against the USD, while the other 3 investors saw their local
currency fall (between 20 - 40 %)
against the USD.
There is pressure on many Asian
currencies to
appreciate against the dollar rather than buy more dollar denominated debt, which expands their monetary bases, and helps fuel inflation.
Higher interest rates also impact demand for a
currency, with higher - yielding
currencies expected to
appreciate against lower - yielding
currencies, holding all else equal.
In terms of
currency effects, the Australian dollar
appreciated against all the major
currencies that the Fund has exposure to.
For example, if the U.S. dollar
appreciates substantially
against all other
currencies, the yuan would also
appreciate, which may not be what the Chinese central bank wants.
Can anybody explain to me why a Central bank would NOT want its
currency to
appreciate against other
currencies?
The Canadian dollar
appreciated against major
currencies, including the US dollar, and dragged down returns from US and other foreign markets.
For a 25 year term, annual returns of 7 %,
currency - hedging lag of 1.5 %, one - way
currency conversion cost of 1.5 %, we find that (no surprises here) not hedging is advantageous if the foreign
currency appreciates or remains the same
against the Canadian dollar.
They are building up dollar reserves because they don't want their
currencies to
appreciate against the dollar.
Our overweight bias to the USD was the primary detractor as most
currencies appreciated versus the dollar
against a backdrop of US political uncertainty.
In the case of Emerging Markets, positive returns were generated over the period as emerging market
currencies generally
appreciated against a basket of developed market
currencies.
Even though Ethereum classic saw a very «sizeable» increase
against the dollar last year, that alone still can't be any sign of good things ahead because 2017 in itself saw almost all cryptocurrencies
appreciate against traditional
currencies.
The trade - weighted U.S. dollar has
appreciated 15 %
against foreign
currencies since last summer, including a 20 % singular gain
against the euro, which has made American - made goods more expensive for foreign buyers.