Sentences with phrase «large dollar appreciation»

Not exact matches

It seems more likely Beijing would consider taking over foreign businesses, especially given its largest US$ 1.9 trillion foreign exchange reserve in the world, and the appreciation of its currency by 9 % y - o - y against the US dollar, or 40 % y - o - y against the Canadian dollar, or over 20 % against both currencies since July 21, 2005 when the Chinese central bank allowed its RMB to float.

As usual, I don't place too much emphasis on this sort of forecast, but to the extent that I make any comments at all about the outlook for 2006, the bottom line is this: 1) we can't rule out modest potential for stock appreciation, which would require the maintenance or expansion of already high price / peak earnings multiples; 2) we also should recognize an uncomfortably large potential for market losses, particularly given that the current bull market has now outlived the median and average bull, yet at higher valuations than most bulls have achieved, a flat yield curve with rising interest rate pressures, an extended period of internal divergence as measured by breadth and other market action, and complacency at best and excessive bullishness at worst, as measured by various sentiment indicators; 3) there is a moderate but still not compelling risk of an oncoming recession, which would become more of a factor if we observe a substantial widening of credit spreads and weakness in the ISM Purchasing Managers Index in the months ahead, and; 4) there remains substantial potential for U.S. dollar weakness coupled with «unexpectedly» persistent inflation pressures, particularly if we do observe economic weakness.

Also implied volatilities were larger for «out of the money» options to buy renminbi, than for equally «out of the money» options to sell the currency, thereby suggesting that the balance of expectations was skewed towards an appreciation of the Chinese currency against the US dollar.

The fall in commodity prices in Australian - dollar terms has, however, been much larger, reflecting the appreciation of the Australian dollar.

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.