Word: dollarization
(lookup in dictionary)
(lookup stats)
Dates: all
Sort By: most recent first
(reverse)
...does its best to impose order on what would otherwise be the disorderly bankruptcies of the two companies, but in many regards it just passes the buck to Obama. To be fair, Treasury had but a week to address an incredibly complex problem and come up with a multibillion-dollar aid package - no small achievement, however lacking in teeth. (Read "In the Nick of Time: Bush Announces Auto Bailout...
...Japanese consumers, there is some benefit to a stronger yen: walk into a local supermarket and one might see imported items that are specially marked down, giving new meaning to a "yen appreciation" sale. But a major concern for the Japanese economy is that currency rates, the dollar-yen in particular, are pummeling Japanese exporters as their products lose competitiveness abroad. Coupled with a general decline in global demand, the weak dollar-yen is dumping ice water on corporate profits at titans like Sony and Honda...
With the exchange rate hovering just below 90 yen to the dollar, and having risen to 87 on Wednesday after the U.S. cut interest rates, the Bank of Japan decided on Friday to cut its benchmark rate to 0.1%. The move was done on a near unanimous vote among policy makers. However, with its overnight rate already at 0.3%, it is unclear what such a small rate cut could achieve...
...company betting on a yen reversal may have a long wait. Tohru Sasaki, chief currency strategist in Tokyo at JPMorgan Chase & Co., believes the dollar-yen exchange is reaching a sustainable average. "The yen's level until last year was abnormally weak. Now it's coming back to normal," he says. Compared to the mid-1990s, he says, the strong yen's negative impact on the Japanese economy is "not that large." To have the same effect as the postwar peak in 1995, the exchange rate would have to reach 48 yen to the dollar, he says, because...
Satoru Ogasawara, economist for Credit Suisse in Tokyo who covers foreign exchange, expects the yen to advance to 85 to the dollar within three months and to 83 over the next year. Intervention, he says, will come at the 85-level, but even then it is difficult to predict what will happen. "What we're seeing is the unwinding of the yen carry trade," says JPMorgan Chase's Sasaki, referring to the practice of buying low-interest yen and investing it in high-yield currencies. "It's a very strong and powerful movement and it's difficult to stop...