In New Zealand, the head of the central bank said the bank has intervened in currency markets to slow the appreciation of its currency, but admitted there was only so much it could do.
WSJ: Asian Governments Take Measures to Battle Strong Currencies
In nearby New Zealand, the head of the central bank said the bank has intervened in currency markets to slow the appreciation of its currency, but admitted there was only so much it could do.
WSJ: Asian Governments Take Measures to Battle Strong Currencies
Expectations that the Brazilian Finance Ministry would announce new currency measures to curb appreciation of its currency, the real, have not been met.
FORBES: Brazil Postpones Currency Measures (But They Are Coming)
Despite worsening terms of trade and appreciation of our currency, the trade deficit is the same as last year.
Couple that with the stealth appreciation of the currency and gains resulting from a looser peg could prove elusive.
FORBES: Corporate America's Multi-Billion Dollar Currency Problem
This is one reason why the government, despite prodding from America, continues to set its face against an appreciation of its currency.
Going back to China for a moment -- some financial analysts have said that there are fresh signs that China might halt the appreciation of its currency.
Brazil, on the other hand, has had to deal with a loss of competitiveness due to an extreme appreciation of its currency, the real, as capital flows flood its massive, fast-growing economy.
FORBES: Trade Wars: How Overheating Led To A Conflict Between Brazil And Argentina
First, EM currency appreciation has stopped since 2011 following a period of strong currency appreciation following the global financial crisis.
FORBES: Emerging Markets GettingTired; U.S. Better...For Now
Rather, he believes that the government authorities see the appreciation of the Chinese currency as a long-term, structural adjustment.
Gross margin was 12.5%, down from 13.4% a year ago, a slip the company blamed on appreciation of the Chinese currency.
The recent sharp appreciation of the single currency did not "signal a serious overvaluation", Jens Weidmann argued in a speech that came at a time of rising fears the eurozone stands to lose most in a global currency war.
For instance, Zambia's burgeoning tobacco and horticulture, which were encouraged in order to make the country rely less on copper, are struggling to cope with a sudden appreciation of the local currency, driven up by high copper prices and aid money.
For the buyers, obtaining a higher interest rate than is available from bank deposits, as well as the ability to purchase a yuan-denominated security and to benefit from the appreciation of the Chinese currency that many expect in the coming years are the main attractions of dim sum bonds.
After eight years of threatening punitive action to compel appreciation of the Chinese currency at a pace deemed acceptable by U.S. politicians (a period, by the way, in which the Yuan appreciated by 30% against the dollar in nominal terms and by much more in real terms), lawmakers may just pull the trigger this time.
Along those lines, we note that senior US officials have been quiet on the issue of currency appreciation, with the US Treasury Department delaying the publication of its semiannual report on exchange rate policies, which was due on April 15.
The value of their remittances has been further eroded by the appreciation of Myanmar's currency, the kyat.
Mantega is responsible for the all-important task of keeping the Brazilian growth miracle going by taming the double-threats of currency appreciation and inflation.
Besides the Israeli shekel, the other main exception is the South Korean won which, as a result of currency appreciation, is now 8% overvalued against the dollar.
Investors may also get the added upside of currency appreciation.
Decisions like this will benefit all categories of emerging bonds, but particularly local currency bonds which are positioned to gain value on the back of currency appreciation over the long run.
WSJ: Pimco's Guiding Asia-Pacific's Investor Evolution: Ki Myung Hong
The carmaker says that one yen of appreciation for the Japanese currency translates into a 30 billion yen hit to its bottom line.
In the two days following his speech, the peso fell by 5% against the dollar, ending a month of steady currency appreciation, though it has since edged up again.
These developing countries often intervene in currency markets to prevent currency appreciation and its negative effects on their balance of trade resulting from currency depreciation and manipulation in other countries.
Countries like Brazil could conceivably raise taxes on foreign investors buying local currency bonds to ward off dollar flow and sharp appreciation of the Brazilian real.
FORBES: Some Fund Flow Leaving Europe, Heads To Emerging Markets
Barclays recommended in a note to clients late Wednesday that they should anticipate further appreciation in the Brazilian currency, the real, with a target of BRL1.50 over the next three months.
If that is reached in the weeks ahead, investors should expect Finance Minister Guido Mantega to dig into his bag of tricks to try to put the breaks on currency appreciation.
FORBES: Dollar Weakens Against Brazil Currency; Lowest Level in 12 Yrs
Analysts said SAFE's move likely reflected the Chinese government's concerns over the yuan's rapid appreciation in recent weeks, but noted that the currency remains one of the bright spots among emerging markets.
And in dollar terms, given the loss of productivity suffered by the Brazilian economy given substantial appreciation in their currency, unit labor costs have grown by 110% since 2005. (Read No Credit Bubble In Brazil, Just Dangerous Consumer Debt Burden).
The growing trend of multinationals shifting some of their product sourcing from China to other countries in Asia has been driven by a combination of rising labor costs, worker shortages, inflation, currency appreciation and changing policies.
FORBES: China's Untapped Potential Far Outweighs Its Competitors
应用推荐