Sentences with phrase «currency depreciation»

Currency depreciation refers to the decrease in value of a country's currency compared to other currencies. This means that the currency can buy less goods and services from other countries. Full definition
Therefore, investing in a fund with exposure to foreign energy stocks is a bit like a tug - of - war: some of your gains may be offset by currency depreciation.
It, and the foreign currency debt servicing payments, are therefore subject to valuation effects when the exchange rate changes; currency depreciation increases the debt - servicing costs in Australian dollar terms.
Todays U.S. dollar is actually high versus Canadian dollar and caution should be taken when investing at this time unless potential return outweighs risk of currency depreciation if Canadian dollar rises against U.S. dollar.
The Baltics and other countries have rejected currency depreciation on the ground that it would delay EU membership.
Regarding U.S. monetary policy, the IMF said it still remains «very accomodative,» but that the possibility of future rate hikes «have contributed to tighter external financial conditions, declining capital flows, and further currency depreciations in many emerging market economies.»
Countries like India, Brazil, until recently the darlings of the market, found themselves battling capital flights and rapid currency depreciation.
I agree with the Accumulator's points about Global Index linkers but would point out that a Global Equity fund would also give a measure of protection against home - grown inflation via currency depreciation as well as capital / income growth.
The prospect of a weakening yuan and subsequent rounds of competitive EM currency depreciations make matters worse.
The sharp currency depreciations in these countries have led, in varying degrees, to increased inflation although, in most cases, it remains well contained.
At that point, Puerto Rico's strong ties to the United States became a liability because Puerto Rico could not adjust to bad economic times with currency depreciation, but Puerto Rican people could adjust to bad times by moving to the mainland United States.
Therefore, the macro environment is prospectively poor for our thesis — we risk currency depreciation and the ever present threat of government risk / intervention — but I think this is countered by the level of stock undervaluation and the «micro» picture.
In addition, the substantial currency depreciations experienced by emerging countries since May make their exports even cheaper to buy.
«Clearly, currency depreciation alone is no panacea for a quick revival of Canada's manufacturing heartland,» Marion said in a research note.
Indeed, we are seeing today the dollarization of debt in countries whose debt - service forces a chronic currency depreciation.
The net benefits of lower oil prices and currency depreciation coupled with an already evident US rebound may not have been given enough time to lift GDP growth in other regions of the country.
What matters more is whether this change ushers in a period of sustained currency depreciation.
As discussed below, the recent currency depreciation can be expected in time to give a significant boost to import prices at the retail level, but the main impact has yet to flow through.
Declines in asset prices have become widespread across the region, in many cases amplified by the higher interest rates put in place to resist currency depreciations.
To a lesser extent, Singapore and Taiwan have also lost competitiveness in foreign markets, having had smaller currency depreciations than those of the initial crisis - affected group.
All have seen sharp currency depreciation versus the U.S. dollar and are struggling with rising current account deficits.
What is more clear is that an increase in price inflation, or greater currency depreciation would leave a sour taste in the mouths of buyers of Treasury securities.
Finally, whatever you want to say about the inevitability of the decline of American hegemony, the U.S. dollar and U.S. Treasury bonds still play a unique role in the global economy, which probably allows us to take on more debt than other countries without crippling our economy through currency depreciation and high interest rates.
Profitability and sales maintained during tough economic climate and difficult currency depreciation of UK Sterling against the U.S. Dollar.
Instead of curing inflation, recession may lead to currency depreciation as domestic industry stagnates.
In contrast to the movements of the euro and the yen, EM currency depreciation has been ongoing.
Central banks in LAC will need to tailor their monetary - policy decisions to tackle the three - pronged challenge of currency depreciation, higher inflation and deceleration in economic activity, as capital flies away from emerging markets.
Dollar - pegged countries like Saudi Arabia, Qatar, Kuwait and the United Arab Emirates (UAE) don't have currency depreciation to help offset to higher domestic interest rates.
In a statement addressing the company's demise, Hansen said that while there were fans of Mexx's latest collections at both the industry and customer levels, «macro-economic headwinds» including a slowdown in retail sales in Europe, Russia's currency depreciation and Eastern European political unrest meant the company's health couldn't be revived to fighting form.
What has caused Russia's inflation is primarily its currency depreciation.
Instead, Germany exported the excess savings to Spain, which under the conditions of the euro Spain was not able easily to reject (tariffs or currency depreciation).
Historically, after a country experienced a financial crisis, growing foreign demand and currency depreciation have often led to a sharp improvement in the trade account that has put a floor under economic activity.
James Hunt, portfolio manager of the Tocqueville International Value Fund (TIVFX), answers questions about the fund, the state of various international markets, currency depreciation and the decline in oil prices.
Even though some people say that the dollar is going straight to hell because of currency depreciation, it still is relatively safer compared to other currencies like the Euro and the Yen.
The overall effect of the currency depreciation on inflation is subject to considerable uncertainty.
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.
Emerging market bonds in their own currencies have a similar justification to emerging market equities, especially since the currency depreciation against the dollar is likely to slow or stop altogether.
Although we agree with Governor Poloz — that the BoC is not explicitly targeting a currency depreciation or level — we do think that the central bank views currency weakness in the near - term as a key tool in achieving their longer - term inflation mandate.
That said, from the point of view of unhedged U.S. investors, FTSE 100 holdings still lost a lot of their value, reflecting the currency depreciation.
Finally, the extent of internal policy incoherence was accentuated by the currency depreciations caused by the sudden midyear reversal in cross-border capital flows.
The currency depreciation will give a significant boost to import prices, lifting the overall inflation rate further above the trough reached in the December quarter 1997.
After all, it was just two years ago when a «taper tantrum» — or the talk of an end to the Fed's bond - buying program hit emerging markets such as India and South Africa with a wave of currency depreciation and capital flight.
While it's encouraging to see lithium carbonate and hydroxide prices spiraling upwards, the oligopolistic market structure ensures that only the established players like SQM (SQM: NYSE), Albemarle (ALB: NYSE), and FMC (FMC: NYSE) should see margin expansion from higher prices as their fixed cost structures are in place and variable costs are falling due to a mixture of lower oil prices and currency depreciation.
To be clear, this should not prevent the ECB from hiking rates before 2021, but the result is a «soft guarantee» and a stronger case for policy divergence with the US, which the ECB hopes will eventually result in currency depreciation.
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