a. Expectations of higher interest rates in the US Higher expected rates of return in the USwill causecurrency appreciation
the coronavirus pandemic(passive) caused bycurrency appreciation
to keep interest rates unchanged and accumulate reservesto preventappreciation of its currency
Export - Import : A country exporting more than importing from other countries , would result in higher demand for that currencycausingcurrency appreciation
RBI has been very cautious about this mattermay causecurrency appreciation
The BOJ should continue with both asset purchases and its negative interest rates policypartly to preventcurrency appreciation
Central banks could find themselves in a race to the bottom on interest ratesto preventcurrency appreciation
Higher export prices ... which tendsto triggercurrency appreciation
The principal aim of its policy for a long time has beento preventappreciation of its currency
to attract investors seeking higher yieldscausingcurrency appreciation
The BOJ should continue with both asset purchases and both asset purchases 's negative interest rates policypartly to preventcurrency appreciation
However , while the euro , the pound and virtually every other non - Asian currency have strengthened against the dollar in the past 12 months , Asian central banks have been interveningto preventcurrency appreciation
an increase of demand of domestic goods relative to the foreign goods , Tariffs and quotas , Export demand increase , Productivity and Demand of money(passive) is caused byAppreciation of a currency
economic stabilisation in the 1990s and a huge increase in commodity exports since then(passive) caused bycurrency appreciation
Exchange - rate management can be usedto preventcurrency appreciation
desirableto preventcurrency appreciation
the tendency of the policyto causean appreciation of the currency
deflation in the marketcausesdeflation in the market
a narrowing in the trade surplus , which pushed down international reservescauseda narrowing in the trade surplus , which pushed down international reserves
challenges for emerging sovereigns New York , October 28 , 2010createschallenges for emerging sovereigns New York , October 28 , 2010
problems to other tradable sectorsmay causeproblems to other tradable sectors
Japan 's long - term deflation and stagnationcausedJapan 's long - term deflation and stagnation
just 1.5 percent of that ... according to JP Morganhas contributedjust 1.5 percent of that ... according to JP Morgan
imported deflation exaggerating already severe disinflationary risks in their economiesto preventimported deflation exaggerating already severe disinflationary risks in their economies
7 % in the first half and we do n't expect it to continue at that ratecontributed7 % in the first half and we do n't expect it to continue at that rate
an inverted J - Curve effect states that for a depreciation of the currency to improve the balance of trade the sum of the price of elasticities of demand ( PEDs ) for imports / exports must be greater than 1 Business strategy that limits the risk that losses are made from changes in the price of currencies or commodities market where people and businesses can buy and sell contracts to buy commodities or currencies at a fixed price at a fixed date in the future the exchange rate of one currency against a basket of currencies of other countries , often weighted according to the amount of trade done with each country a currency that is shared by more than one country - the Euro Euro Area / Eurozone policies that increase the price of imports and/or reduce the price of exports in order to reduce the demand for imports and raise for exports to correct a current account deficit on the balance of payments polices that reduce the overall level of national income in order to reduce the demand for imports and correct a current account deficit on the balance of payments deepens economic integration from a customs union by eliminating non - tariff barriers to trade , promoting the free movement of labour and capital and agreeing common policies in a number of areas the deepest form of integration in which countries share the same currency and have a common monetary policy as result where economic integration results in high - cost domestic production being replaced by imports from a more efficient source within the economically integrated area limits agreed to public sector borrowing and the national debt for those EU countries that are part of the euro area elements of fiscal policy that cushion the impact of the business cycle without any need for corrective action by the govtcausesan inverted J - Curve effect states that for a depreciation of the currency to improve the balance of trade the sum of the price of elasticities of demand ( PEDs ) for imports / exports must be greater than 1 Business strategy that limits the risk that losses are made from changes in the price of currencies or commodities market where people and businesses can buy and sell contracts to buy commodities or currencies at a fixed price at a fixed date in the future the exchange rate of one currency against a basket of currencies of other countries , often weighted according to the amount of trade done with each country a currency that is shared by more than one country - the Euro Euro Area / Eurozone policies that increase the price of imports and/or reduce the price of exports in order to reduce the demand for imports and raise for exports to correct a current account deficit on the balance of payments polices that reduce the overall level of national income in order to reduce the demand for imports and correct a current account deficit on the balance of payments deepens economic integration from a customs union by eliminating non - tariff barriers to trade , promoting the free movement of labour and capital and agreeing common policies in a number of areas the deepest form of integration in which countries share the same currency and have a common monetary policy as result where economic integration results in high - cost domestic production being replaced by imports from a more efficient source within the economically integrated area limits agreed to public sector borrowing and the national debt for those EU countries that are part of the euro area elements of fiscal policy that cushion the impact of the business cycle without any need for corrective action by the govt
a rise in dollar interest ratescausinga rise in dollar interest rates
serious problemscan causeserious problems
in the appreciation of all Iraqi capital investmentswill resultin the appreciation of all Iraqi capital investments
goods to be relatively more expensive in other countries while depreciation would have a reverse effectcan causegoods to be relatively more expensive in other countries while depreciation would have a reverse effect
in lower prices of imported goodswould resultin lower prices of imported goods
in a tighter overall setting of monetary policywould actually resultin a tighter overall setting of monetary policy
exports prices to move up and import prices to be cheapertriggeringexports prices to move up and import prices to be cheaper
from the Fed 's policyresultingfrom the Fed 's policy
a lot of heartburncausinga lot of heartburn
to higher profit margins through the import channel and imported inputs act as a natural means for hedging exchange - rate risksleadsto higher profit margins through the import channel and imported inputs act as a natural means for hedging exchange - rate risks
exports prices to go up and import prices to be cheapercausingexports prices to go up and import prices to be cheaper
an exchange rate volatilitywill causean exchange rate volatility
to preference for imported equipment Bhelmay leadto preference for imported equipment Bhel
from economic outperformance than during prior episodes of euro strengthresultingfrom economic outperformance than during prior episodes of euro strength
to a fall slowing inflationcould leadto a fall slowing inflation
the problems in manufacturing(passive) caused bythe problems in manufacturing
in increasing the import costsresultingin increasing the import costs
for examplemight promptfor example
to uncompetitive exports which leads to the decline of domestic industry – which leads to increased aid flows to address the stagnationleadsto uncompetitive exports which leads to the decline of domestic industry – which leads to increased aid flows to address the stagnation
to loss in competitivenessleadsto loss in competitiveness
to more foreign investmentleadsto more foreign investment
in overvaluationresultingin overvaluation
to operating profit growthalso contributedto operating profit growth
domestic inflation to fallusually causesdomestic inflation to fall
in limited benefits to the global economywill resultin limited benefits to the global economy
to a gradual shift in orders to other parts of the world T E Narasimhan & Vinay Umarjiis leadingto a gradual shift in orders to other parts of the world T E Narasimhan & Vinay Umarji
asset bubblesmay createasset bubbles
increase in import while discourages exportcausesincrease in import while discourages export