Sentences with phrase «currency appreciation»
Currency appreciation refers to an increase in the value of a country's currency relative to other currencies. It means that it takes more of another currency to buy one unit of the appreciated currency. This can happen due to various factors like strong economic performance or high demand for the currency. Overall, it means the currency has become stronger and more valuable. Full definition
Take, for example, the contentious issue of currency appreciation.
blog.politics.ox.ac.uk
We are going to see strong resistance to currency appreciation in the future and increases in subsidies in many nations — first, second and third tier currencies.
In addition, their risk - to - reward profile is enhanced by declining currency volatility and a positive long - term outlook for currency appreciation.
The second way you can make money with this strategy is through currency appreciation.
On a related note, emerging market currency appreciation can be both a great source of returns and diversification.
Control of the short rate is possible because monetary policy shifts the expected rate of currency appreciation or depreciation.
While we believe that temporary factors have amplified the drop in services inflation, the ECB will likely worry about potential second - round effects of lower oil prices and currency appreciation on the price of some other (non-energy) goods and services, including on Non-Energy Industrial Goods inflation which fell sharply, from 0.7 % to 0.3 % in February.
To the extent that it allows the opponents of reform to paint the issue of currency appreciation as bowing to outside pressure, the answer is likely no.
For perspective, the expected currency appreciation alone is slightly higher than the expected real yield on a 10 - year U.S. Treasury bond.
International shares also offer foreign currency appreciation potential.
Total Return from currency appreciation, implied yields of Emerging Markets currencies, and income generated from U.S. money market collateral securities
Since Japan is reliant on selling cars and electronics to the world, that currency appreciation did serious damage.
«Currency appreciation wipes it all out.
A strong dollar has been, and still is, the main foe of EM currency appreciation.
Looking ahead, we continue to expect rising inflation in the United States, rising US Treasury yields, depreciations of the Japanese yen and euro, and currency appreciations across a select set of emerging markets.
Journalists were very well prepared and even threw back Draghi's previous responses about how a 10 percent currency appreciation would lower inflation measures by 0.5 percent.
Thus, currency appreciation caused by differing interest rates is reigniting third world countries.
«The PBOC will have to choose between allowing significant currency appreciation and continuing to accumulate foreign assets,» Mark Williams, the firm's chief Asia economist, wrote in a research note Monday.
Other Asian central banks have also continued to intervene heavily in foreign exchange markets, restricting the average Asian currency appreciation against the US dollar to less than 1 per cent since the last Statement.
You'll notice that many of the YTD returns are different when adjusted for local currency appreciation or depreciation and the relative devaluation of various emerging market currencies is another theme that has come to the fore in 2014.
Our own models suggest that second - round effects will remain contained barring another episode of currency appreciation [2].
Similarly, the more currency appreciation is perceived as «the policy which the United States is asking for», the more difficult it will likely be for the reform - oriented wing within China to win the internal political fight.
Currency Appreciation Skeptical readers might object that this must be a sign of stressed markets, a value trap ready to snap shut.
They currently offer interest rates which are competitive with U.S. bonds, plus the prospect of substantial currency appreciation over time, and a low likelihood of sustained currency erosion.
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.
Access to Coinfloor's spot exchange will allow investors to convert bitcoin to fiat currency post-physical delivery, providing opportunities for longer - term currency appreciation or through meeting bitcoin - denominated obligations.
These higher forecasted returns are due partly to higher current dividend yields, but also to less risk of a tumbling CAPE ratio in the years ahead, paired with expectations of currency appreciation in countries with recently depressed currencies.
Hedging out currency exposure entirely would remove the upside potential of currency appreciation from the equation.
U.S. monetary policy has left Carney to choose the least - bad option — currency appreciation or a debt bubble.
Emerging Markets «The turbocharged ride of the past decade has left them over-owned and bubbly, while their competitive advantage has been eroded by inflation and currency appreciation.»
In contrast to the strength in volumes, the value of total imports declined by around 5 per cent over the year to the December quarter, as the currency appreciation has lowered Australian dollar import prices.
Ongoing gains in world commodity prices are also assisting growth in earnings by partially offsetting the dampening effect of the currency appreciation on Australian dollar export prices.
The point which Ben very appropriately emphasizes is that unmanaged secular stagnation in one place is contagious — that a higher level of saving over investment leading to low interest rates in one place, leads to current account surplus, leads to a capital outflow, which then leads to currency depreciation, leads to currency appreciation in other places, and leads therefore to spreading low demand and low interest rates everywhere.
Overall CPI inflation, however, remains at the lower end of the Reserve Bank of New Zealand's 1 — 3 per cent target band, with the currency appreciation exerting a dampening influence.
The global investors continue to be attracted to this particular market due to the anticipation of currency appreciation and the exposure to Chinese credits.
That was particularly dramatic in 2015, when US and international equities posted only modest returns in their native currencies but netted close to 20 % for Canadians on the strength of the currency appreciation.
This is both good and bad: currency appreciation has the potential to offset some of your losses and add to your gains when markets rebound.
Besides the potential currency appreciation, the boom in Chinese debts comes amid an increasing appetite for fixed income assets in addition to the potential yield pick - up offered in the current low - rate environment.
The net effect of the currency appreciation was to act as a headwind, reducing the Fund's returns by approximately 2.5 %.
The currency appreciation alone raised the share price of the ADR, even though the price of the share on the European exchange was unchanged.
The premium for currency exposures in EMD has probably never been as small as it is today, meaning the reliance for a superior return must be almost solely on currency appreciation.
-- the term of investment (in years)-- annual returns — Currency - hedged fund tracking error — Currency conversion cost — size of currency appreciation / depreciation over the investment term