With its new basket, Chinese authorities have found a way to
weaken their currency while anchoring market expectations in an effort to avoid a market shock similar to that of last August's stock market crash, according to a BofA Merrill Lynch Global Research report.
Not exact matches
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.
Currency Hedges
While the Swiss franc and Australian dollar
weakened versus the U.S. dollar during the quarter, we continue to believe they are overvalued.
As a result,
while we decreased our exposures as these
currencies weakened, the
currencies for which the Fund has hedged were the same as the previous quarter.
While talking heads talk, they overstate the British problems for at least the British exports get a boost from a
weakened currency, which is something that the sick men of Europe (PIIGS) can not avail themselves.
Through this relationship one
currency will appreciate (or strengthen) against the other,
while the other will depreciate (or
weaken).
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.
To begin,
while headlines may indicate the dollar is strengthening, remember that there are 180
currencies in the world and they are not all
weakening against the dollar.
While the US Dollar could see
weakened purchasing power against particular
currencies like the Canadian Dollar or Aussie Dollar, in dollar terms, the ADRs and emerging market share prices in terms of US dollars could continue to run.
While the world economy has been getting dragged through the gallows, it seems that some global companies are raising prices on their products to combat the
weakening of
currency in some regions.
While a
weakening domestic
currency can be painful for citizens whose wealth is stored in that
currency, there are reasons that certain governments prefer a weaker
currency, especially for countries that are net exporters.
Analysts and investors attribute the sharp rise in bitcoin last year to Chinese investors, who began buying it up
while at the same time selling the yuan amid worries that the Chinese
currency would
weaken.
Prices for U.S. government debt fell marginally,
while the dollar
weakened against a basket of
currencies.