Strong currencies make a nation's exports more expensive and imports from foreign markets cheaper, whereas
weaker currencies make exports cheaper and imports more expensive.
Not exact matches
But the mechanics of the euro guarantee escalating tension: The single
currency makes the exports of
weaker countries artificially expensive (and those of Germany excessively cheap), putting their economies at a crippling disadvantage.
However, it would be fair to deduce that Poloz is unmoved by arguments that a
weak currency hurts Canadian business by
making it more expensive to import cutting - edge technology and to expand overseas.
Increased demand from the United States, Canada's main trading partner, and a
weaker currency are
making a difference.
This is based on a simple economic model that states not all production (financial services in this case) will relocate to the large economy (the EU) as the small economy (UK) is able
make up for its lack of competitiveness by having a
weaker currency.
A
weaker dollar is beneficial to oil and other dollar - denominated commodities, as it
makes them cheaper to holders of other
currencies, broadening their investment appeal.
The SNB's «profit was lifted by a trio of positive forces: Low bond yields preserved the value of its foreign bonds; higher equity prices raised the value of SNB holdings... and the
weaker Swiss
currency made those foreign assets worth more in franc terms.»
Governor Poloz has also
made several remarks recently that support our view that the BoC would prefer a
weaker currency.
A
weak local
currency makes a country's goods less expensive for foreign buyers.
Deloitte's Mr Harvey said during the past few years rival wine companies such as Argentina and Chile had
made strong gains in the key US and UK markets at the expense of Australian producers because their own
currencies were so
weak and their bottled wine prices were extremely competitive on the shelves of liquor retailers in the US and Europe.
A
weaker dollar
makes gold less expensive for holders of foreign
currency.
A
weaker currency is going to
make those things more expensive.
The market for creating games in Poland was pretty good recently because the Polish Zloty, the
currency, is a rather
weak currency in comparison to the American Dollars or the Euro, but if you
make games in Poland you earn in Euros or Dollars.
Gold is used as an alternate option for investment whenever it comes to political & financial uncertainties and the
weaker dollar
makes the metal available at cheaper price to the users of other
currencies.
That's important because
weaker EM
currencies have a negative impact on EM stocks
making these look less attractive for global investors.