Posts Tagged ‘Inflation’

How the Value of Currency is Determined?

Posted by Tushar Mathur on March 23rd, 2012

The price termed as Fair Market Value is the one at which there is a eager buyer as well as an interested person there to provide with the sale come at one place together. The person who has come for the purchase has to keep many things under consideration in order to make accurate assessments regarding the value of the currency at a particular time. There happen to be around 180 varieties of the currencies at the moment in the world. The factors that are made use of in order to determine the value of the currency can be stated as follows.

Click to continue reading “How the Value of Currency is Determined?”

Posted in Currencies Comments Off

The Sovereign Debt Crisis: What the Future Holds

Posted by Tushar Mathur on January 31st, 2012

The sovereign debt crisis is a term on the lips of all market watchers. It first worked its way into Europe in 2010 but has since spread across the Atlantic and to Asia. When France lost its AAA ranking by Standard and Poor’s a mere week ago, it meant that all of the world’s five largest sovereign borrowers (China, Japan, Italy and the United States) are now without their AAA rating. Beside the escalation of the sovereign debt crisis in 2011 these countries still have massive budget deficits and seem unwilling to tighten the belt.

Click to continue reading “The Sovereign Debt Crisis: What the Future Holds”

Posted in News Comments Off

China’s currency is higher than the US currency

Posted by Tushar Mathur on August 21st, 2011

The china’s currency Yuan is at rise against the dollar however the report said that their rise need not seems to support the rise in their commodity as the demand for the imports is high from developed world. The vulnerable seems to provide more shocks as it leaves behind the oil to copper. The key markets are the USA and the European country and their buying power.

When the Yuan currency value range increases it will also tend to increase the buying power of the other world top commodity. Nevertheless the china’s demand for the domestic brand will not be enough to rule out the Beijing commodity buying power against that of the key ruling power country.

Click to continue reading “China’s currency is higher than the US currency”

Posted in Currencies Comments Off

South Africa’s rand is slightly higher against dollar and ahead of data

Posted by Tushar Mathur on July 24th, 2011

On the forex trade on Thursday the South Africa’s rand value was found to be higher against dollar and also the CPI data is found ahead however the inflation was higher in the month of June. The economist still expecting that the reserve bank has a hold over their interest rate as the economical growth is very weak.

Some debt plans is problem in USA and Europe. Nevertheless the value of the bonds and currency as the key role for the assess grades to solve the entire debt problem abroad.

Click to continue reading “South Africa’s rand is slightly higher against dollar and ahead of data”

Posted in Currencies Comments Off

Yuan is marginally lower against dollar

Posted by Tushar Mathur on July 3rd, 2011

The People’s Bank of China has fixed the record high midpoint value for Yuan despite of this still the Yuan is slightly and marginally low against dollar at the close of the trade on Friday. However from the point of view of the investors and dealers feel that the Yuan will rise sometime in the upcoming months. In the year 2001 Yuan has received great sort of appreciation and dealers awaits the same in 2011.

Falling of global commodity prices are very great tread to china in lowering their currency value. Adjustment or alternative would help Yuan to rise.

Click to continue reading “Yuan is marginally lower against dollar”

Posted in Currencies Comments Off

Swiss franc is flirted with record high against euro

Posted by Tushar Mathur on June 21st, 2011

Since Thursday Swiss franc is low against euro. On the forex trade on Thursday the Swiss franc fell against euro and the reports concluded that this state will prevail and the debt crisis for the Greece will be soon resolved. Swiss franc had its all time record of being at 1.1946 however at the Thursday trade close at regarding the New York forex trade, the Swiss franc was at 1.2033 per euro.

Investors has dragged the Swiss to the safe zone of investing over the risk area values but on Thursday the Swiss national bank (SNB) announced about the strength that it is being going through however investors ignored them from accepting, this reason has caused the Swiss franc to be low against euro and dollar.

Click to continue reading “Swiss franc is flirted with record high against euro”

Posted in Currencies Comments Off

Dollar vs South Africa’s rand slight change in trade

Posted by Tushar Mathur on March 28th, 2011

On the trade rate on Monday, we would observe that the South Africa’s bond has barely changed against the dollar. There is no much change in the domestic data as seen however it was highly expected as the rate would be affected by the interest decision made by central bank last week.

The basis points are studied to be at 8.905 in the 2026 bond range and however, it would slip down to 7.75 points in the 2015 bond range as they is a steady state change is maintained by the government bond range.

Click to continue reading “Dollar vs South Africa’s rand slight change in trade”

Posted in Currencies Comments Off

Industrial output is likely to be at halt as the Federal bond yield ranged

Posted by Tushar Mathur on February 12th, 2011

As per the prediction report, it seems that the growth of technology and industrial output is seems to be at the slight stage to be halted by 2 percent in December 2010. The last year bond auction is yet to be released in few days. However, the federal bond yield can reduce the trade and heading to look for the factory output data.

The key of the future economic growth is in the hands of the Index of Industrial Production (IIP). A senior citizen of a bank said that there is much change occurs in the industrial output every time and it is very hard to predict that eventually.

Click to continue reading “Industrial output is likely to be at halt as the Federal bond yield ranged”

Posted in News Comments Off

Factors Affecting Foreign Currencies

Posted by Tushar Mathur on April 7th, 2010

Foreign exchange trading refers to the trading activity where the investor acquires one Country’s currency using another Country’s currency. The fluctuations that take place in the valuation of these currencies result in profit making, for the investor. There are various factors that contribute to have an effect on the price variations of different currencies.

The following are some of the factors that affect the forex trading.

Inflation: This has a major effect on the forex trading. Even in the scenario of inflation, the economies are either shrinking or growing. They are not stagnant. As the inflation rises, the money supply increases and thereby the spending power decreases.

Click to continue reading “Factors Affecting Foreign Currencies”

Posted in Currencies Comments Off

South Korean Won Biggest Loser in Asia on Risk Aversion

Posted by admin on January 23rd, 2010

The South Korean currency, one of the best performers in 2009 among Asian emerging markets, had a severe weekly decline as risk aversion remained predominant after China’s statements regarding new regulations on its economy. After China announced it will take further measures to control inflation in the country, which can be understood with implied slower economic growth, the South Korean currency declined versus most of its main trading partners currencies, as was the worst performer in the Asian region this week in foreign-exchange markets. USD/KRW ended the week at 1,152.50 from an opening rate of 1,136.2 this Friday.

Click to continue reading “South Korean Won Biggest Loser in Asia on Risk Aversion”

Posted in News Comments Off

Pound Advances Further Versus Euro on Inflation

Posted by admin on January 20th, 2010

The British currency had a favorable performance today versus multiple key-currencies today, beating the euro and the Swiss franc as the country starts to show more evident signs of recovery, attracting investors back to the U.K. After inflation surpassed analysts estimates and Bank of England’s target today, the pound gained considerably versus most of the main traded currencies, specially versus the euro, as Greece’s budget deficit is still affecting the currency’s outlook, and ths Swiss franc, which had a rally halted as fears of interventions from the nation’s central bank emerged. EUR/GBP slid to 0.8727 as of 23:41 GMT from a previous rate of 0.8785 yesterday.

Click to continue reading “Pound Advances Further Versus Euro on Inflation”

Posted in News Comments Off

Swiss Franc Tumbles on Intervention Fears

Posted by admin on January 20th, 2010

The Swiss currency finally felt the central bankers pressure and declined considerably versus most of its main trading partners’ currencies, on speculations that measures will be taken by the financial authorities to avoid the franc to gain. The Swiss franc dropped even versus the European single currency as some of the bloc’s members are providing negative economic data, evidencing that the Swiss National Bank pressure to halt the franc’s rally is taking effect. The pound was one of the biggest winners versus the franc as the U.K.’s inflation rose beyond forecasts. GBP/CHF traded at 1.6886 as of 22:31 GMT from a previous rate 1.6737 yesterday.

Click to continue reading “Swiss Franc Tumbles on Intervention Fears”

Posted in News Comments Off

Canada’s Dollar Retreats on Oil, Risk Aversion

Posted by admin on January 15th, 2010

The Canadian dollar declined versus its U.S. counterpart and lower-yielding currencies as risk aversion rose impacting markets with extreme influence in the loonie rates, those of raw materials and equities, which dropped globally this Friday. The loonie was impacted today as energetic and metallic commodities declined, specially the crude oil, as raw material exports account for more than half of the country’s international trade revenue, in a day of bearish markets in New York and Toronto. China’s new tightening lending policy declined appeal for high-yielding currencies, and despite U.S. mediocre data published in reports this Friday showing a slow down in the country’s inflation, the greenback advanced versus the loonie after touching a three-month low earlier this week.

Click to continue reading “Canada’s Dollar Retreats on Oil, Risk Aversion”

Posted in News Comments Off

Yen Benefits from China’s Lending Restrictions

Posted by admin on January 15th, 2010

Demand for safety rose today as concerns among investors that Chinese lending limits announced this week by the nation’s government may impact the global economic performance, allowing the yen to beat all of the main traded currencies in foreign-exchange markets today. The yen gained today versus greenback as reports in the world’s wealthiest country came slightly below forecasts, also showing a slow down in the inflation. The euro declined sharply versus the Japanese currency as concerns regarding Greek’s budget deficit are still affecting the outlook for the European currency, causing an outflow of capital towards the safety provided by yen-priced assets.

Click to continue reading “Yen Benefits from China’s Lending Restrictions”

Posted in News Comments Off

Determinants of currency valuation

Posted by Tushar Mathur on October 31st, 2009

Currency valuation of a particular country depends on a number of determinants. The major ones influencing such valuation are the economics of the concerned country including inflation, interest rates and trade deficit and, the social and political factors.

The purchasing power of a currency decreases substantially as a result of continuous inflation. In effect the currency becomes marginalized in valuation. Also inflation entails the currency to be unstable. After the inflation gradually decreases its rate of progression, then only the currency slowly regains its value.

In the USA, the interest rates and the crude oil prices play a determinant role in the valuation of US dollars.

Click to continue reading “Determinants of currency valuation”

Posted in Currencies Comments Off
« Older Entries

Sponsors:




RSS FeedSubscribe to our RSS feed!