Not exact matches
The country's
real effective
exchange rate rose considerably, even as the the economy slowed to annual growth
rates of 7 % from the double - digit pace to which the world was accustomed:
Precious and Industrial Metals Inflation concerns, geopolitical tensions and interest -
rate levels, especially
real yields, contributed to a 1.7 %
rise in the spot price of gold (to US$ 1,325 per troy ounce), as did swings in the US dollar.1 Gold prices traded within the US$ 1,305 — 1,360 range throughout the period, reached 18 - month highs in March and capped their third straight quarterly gain, a feat not seen since 2011.1 Haven demand was a key support as
exchange - traded gold holdings of 2,269 metric tons (mt) neared a five - year high.1 The Fed is widely expected to boost borrowing costs, and investors have been carefully watching the central bank's statements to see whether it targets more
rate increases in 2018 than previously projected.
If the nominal
exchange rate does not adjust, then an alternative is for the
real exchange rate to appreciate via a
rise in wages and domestic prices.
Over the decade to 2011, the
real exchange rate appreciated significantly, consistent with the
rise in the terms of trade and the mining investment boom.
If the Bank of Canada does what it is supposed to do, and what it says it does, then a temporary increase in the fiscal deficit will cause a temporary
rise in the nominal and
real interest
rate (and nominal and
real exchange rate), relative to what would have happened otherwise.
Imports were boosted by the strong domestic demand, partly reflecting the increase in
real income due to the terms of trade
rise, and by the accompanying
rise in the
exchange rate.
Do
rising real yields cause the
exchange rate to
rise... or is it a
rising exchange rate, impacting the fundamentals, which leads to
rising yields?
I am a bit puzzled about how the
rising inflation in China as compared to that in US amkes the Chinese currency to appreciate as per the
real exchange rate.
Favorable
exchange rates, affordable home prices and
rising affluence abroad continue to drive international buyers to the U.S. to purchase properties and make
real estate investments.