In Switzerland, but not in Japan, negative interest
rates weakened the currency.
Not exact matches
As a result of its
weakening economy, China has abandoned its
currency peg with the dollar and reduced the yuan's exchange
rate on three separate occasions this week.
Like many other Chinese developers, Country Garden has borrowed money from overseas, which could leave it vulnerable to any
weakening in the Chinese
currency and to higher interest
rates in the United States.
Weakening currencies in the post-Soviet states threaten to raise default
rates on foreign -
currency mortgages as collapse of the Baltic real estate bubble drags down Swedish banks, while the Hungarian property plunge threatens Austrian banks.
It has been over two decades since the popping of Japan's economic bubble and the country is still actively battling with deflationary forces that are so powerful that near - zero interest
rates (zero - interest
rate policy or ZIRP), repeated bouts of quantitative easing (some call it «money printing») and constant Yen -
weakening currency interventions have barely made a dent.
«China has paved the way for a further
weakening of its
currency by announcing changes in how it measures the value of the renminbi, raising investors» alarm at the prospect a new
currency war just as the US prepares to raise interest
rates» (FT, 12/12/15).
Asian
currencies weakened on Wednesday as the dollar held firm near a four - month high on expectations that a strong U.S. economy would lead to more
rate hikes this year.
That intervention helped
weaken the country's
currency amid widening yen - negative interest
rate differentials.
The most effective way to
weaken the
currency is through a narrowing of the short - term interest
rate differential between the US and Canada.
The emerging markets sell - off intensified on Monday with stocks heading for their worst day in almost six months even before Latin American bourses opened, and
currencies weakened further until the Turkish central bank prompted speculation it might raise
rates by calling an emergency meeting.
On one hand you have the Federal Reserve angling to boost interest
rates, while on the other, central banks in Europe and Japan continue efforts to lower
rates, thus
weakening their respective
currencies.
When a
currency is worth less, its exchange
rate weakens when compared to other
currencies.
It's being reported this morning that Argentina, already in the midst of a severe economic turndown as a result of
weakening commodity prices and international market conditions, is seizing $ 29 billion in pension assets, this after the country announced a few days ago that it would be devaluing its
currency from its current
rate of -LSB-...]
Activision blamed
weakened foreign
currencies, higher tax
rates and investment into Blizzard's free - to - play online battle game Heroes of the Storm.