Not exact matches
This net foreign currency
asset position before hedging has
increased from 7 per cent of GDP from the end of March 2009, driven by a decline in the value of foreign currency
denominated liabilities.
A fair amoiunt of the
increase in offshore USD
denominated assets, might very well be MNC's profits not re-shored, and off course HNW seeking yield, deferring taxation.
Dollar -
denominated assets such as gold are sensitive to moves in the dollar — a fall in the dollar makes gold less expensive for holders of foreign currency and thus
increases demand for the precious metal.
7) Much of the inflation pressures are global in nature, and there is
increasing unwillingness to buy dollar
denominated fixed income
assets.
To the extent currency exchange transactions do not fully protect a Fund against adverse changes in currency exchange rates, decreases in the value of currencies of the foreign countries in which a Fund will invest relative to the U.S. dollar will result in a corresponding decrease in the U.S. dollar value of a Fund's
assets denominated in those currencies (and possibly a corresponding
increase in the amount of securities required to be liquidated to meet distribution requirements).