Due to globalisation, companies whether doing business internationally or nationally are effected by currency volatility which can impact profitability.
For instance, how about losing 298 million pounds in nine months due to emerging market currency volatility. Or Swiss companies facing increasing pressure once the Swiss Central Bank allowed the Swiss Franc to float on the open market.
After Wednesday when the US Federal reserve abstained from pulling back its financial stimulus program, the performance of the dollar against emerging currencies will be tied more than ever before to the upcoming US economic data. Now currencies most sensitive to a reduction in Federal Reserve asset purchases such as emerging-market currencies, will rely heavily on upcoming U.S data, said Steven Englander, global head of G10 FX strategy at Citi, in an interview. After the decision of the Federal Reserve various emerging market currencies such as the Indian Rupee, the…
The Yen rose for a second day in a row against the US Dollar as the machinery order stagnated in July. This brought new concerns about whether the Prime Minister Shinzo Abe will introduce the expected increase of the sales tax and to what extend will this slow down the Japanese economy. Japan’s currency rose 0.3 percent to 99.58 per dollar at 8:33 a.m. in New York. After depreciating to 100.61 yesterday, the weakest level since July 22. The Yen advanced 0.6 percent to 132.16 per euro after strengthening 0.2…