Similarly, the US dollar's reign as the global currency was challenged by the introduction of the Euro in 1999 and put under further strain by
the growth in emerging market currencies.
Not exact matches
Factory activity is shrinking
in China, euro zone business
growth remains weak and
emerging market giant Russia is
in a spiraling
currency crisis.
The usual proxies for global
growth — oil and other commodities,
emerging market currencies, energy and mining stocks — are almost all sharply lower as investors bail out of any kind of trade predicated on
growth in China and the rest of the
emerging world, which accounts for 85 % of the world's population.
The global economy is ending the year
in a fragile state with factory activity shrinking
in China, euro zone business
growth remaining weak, and
emerging market giant Russia
in a spiraling
currency crisis.
Thus, many
emerging markets»
growth rates
in the next decade may be lower than
in the last — as may the outsize returns that investors realised from these economies» financial assets (
currencies, equities, bonds, and commodities).
Emerging market currencies have been hit by a sell - off
in the first week of trading this year after weak economic data
in China rekindled worries over global
growth and halted trading on Chinese equity
markets on two days.
At the same time, having abandoned
currency pegs, the most significant
emerging markets have (so far at least) managed to avoid raising rates
in the teeth of slowing
growth.
Because of the differences
in productivity
growth,
in the long run we expect
emerging market currencies to appreciate relative to the U.S. dollar and other major developed world
currencies.
See the Investor Handbook for more information on Franklin Templeton 529 College Savings Plan, including sales charges, expenses, general risks of the Plan, general investment risks and specific risks of investing
in Plan portfolios, which can include risks of convertible securities; country, sector, region or industry focus; credit; derivative securities; foreign securities, including
currency exchange rates, political and economic developments, trading practices, availability of information, limited
markets and heightened risk
in emerging markets;
growth or value style investing; income; interest rate; lower - rated and unrated securities; mortgage securities and asset - backed securities; restructuring and distressed companies; securities lending; smaller and midsize companies; credit linked securities, life settlement investments, and stocks.
When
Emerging Market Debts (Local
Currency) Perform Well A strong performance in the local currency or positive signs of economic growth will bolster thes
Currency) Perform Well A strong performance
in the local
currency or positive signs of economic growth will bolster thes
currency or positive signs of economic
growth will bolster these bonds.