TITLE

Currency Risk and the U.S. Dollar

AUTHOR(S)
Davis, Joseph H.
PUB. DATE
March 2004
SOURCE
Journal of Financial Planning;Mar2004, Vol. 17 Issue 3, p48
SOURCE TYPE
Academic Journal
DOC. TYPE
Article
ABSTRACT
This article addresses several currency-related issues from an economist's perspective. Currency exchange rates are determined by the interaction of a variety of economic factors. In the short term, these rates can be extremely volatile and unpredictable due to speculative activity and occasional government intervention. For both U.S. and foreign investors, changes in the value of the dollar can raise or lower the total return on international investments. Among mutual funds, currency-related returns may differ considerably depending on a given fund's exposure to foreign economies, the manager's currency-hedging strategy, the severity of the dollar's rise or fall, and disparities in global economic conditions. Ultimately, even a portfolio made up of domestic funds can be affected by significant currency fluctuations when they affect business profitability and global economic performance. In 2004, consensus forecasts anticipate that the U.S. economy will continue to benefit from the weaker dollar through increased manufacturing exports, a reduction in deficit and higher import prices that will mitigate the remote possibility of price deflation. Furthermore, such predictions commonly overlook the U.S. dollar's special status as the international reserve currency. INSET: Executive Summary.
ACCESSION #
12478290

 

Related Articles

  • MONETARY SOVEREIGNTY AS GLOBALIZATION'S ACHILLES' HEEL. Steil, Benn // CATO Journal;Spring/Summer2007, Vol. 27 Issue 2, p203 

    The article argues that monetary sovereignty manifesting in fixed exchange rates affects the direction of fully globalizing the international financial system. Despite introduction of an international monetary system comprising of 150 world currencies in the 1970s and the voluntary acceptance of...

  • Monetary Policy and the Dollar's Decline.  // Economic Trends (07482922);Dec2004, p8 

    The article presents a review of the effect of monetary policy of the United States on the exchange rate movements of the U.S. dollar. Many foreign policymakers are complaining that the dollar's renewed depression in 2004 poses a major downside risk to the future economic growth of the U.S....

  • Are Traditional Foreign Exchange Translation Methods Obsolete? MUELLER, GERHARD G. // California Management Review;Summer65, Vol. 7 Issue 4, p41 

    The author reports on the inadequacies which exist in traditional foreign exchange translation, the process of translating foreign currency into units of the U.S. dollar on financial reports. The place in which management plays in the translating of foreign currencies due to reasons of financial...

  • PERSISTENT TRADE EFFECTS OF LARGE EXCHANGE RATE SHOCKS. Baldwin, Richard; Krugman, Paul // Quarterly Journal of Economics;Nov89, Vol. 104 Issue 4, p635 

    This paper presents a theoretical basis for the argument that large exchange rate shocks--such as the 1980s dollar cycle--may have persistent effects on trade flows and the equilibrium exchange rate itself. We begin with a partial-equilibrium model in which large exchange rate fluctuations lead...

  • MARKET MONITOR.  // Emerging Markets Monitor;2/14/2005, Vol. 10 Issue 42, p19 

    Presents foreign exchange market data as of February 14, 2005. Exchange rate between the U.S. dollar and euro; Exchange rate between Argentine peso and the U.S. dollar; Exchange rate of Philippine peso.

  • EXCHANGE RATES.  // Monthly Statistics of International Trade -- Statistiques mensue;Jul2004, Vol. 2004 Issue 7, p137 

    Provides information on foreign exchange rate per U.S. dollar as of July 2004.

  • FX Update. Woolfolk, Michael // Global Finance;Jul2009, Vol. 23 Issue 7, p1 

    The article discusses the U.S. dollar's condition as the world's main reserve currency, which is questioned by Brazil, Russia, India and China (BRIC). They argued that nations should lessen the reliance of U.S. dollar to have a future stability of the international monetary system by an increase...

  • Question: How do you trade your opinion that a substantial move in either direction in a particular market is imminent? KEEGAN, DAN // Futures: News, Analysis & Strategies for Futures, Options & Deri;May2015, Vol. 44 Issue 5, p11 

    The article offers information on trading in gold futures and the merits of strategies such as long straddles and time valued spreads. Topics include the U.S. Federal Reserve and its quantitative easing (QE) programs, the rise in value of the U.S. dollar against other currencies like the Euro,...

  • Profit from the falling dollar. Howard Jr., William B. // Medical Economics;12/7/2007, Vol. 84 Issue 23, p24 

    The article offers information on how to gain profit from the falling dollar in the U.S. According to the author, one should invest in foreign cash with currency mutual funds. He added that one should steer clear of savings accounts that are not denominated in U.S. dollars. Moreover , one should...

Share

Read the Article

Courtesy of VIRGINIA BEACH PUBLIC LIBRARY AND SYSTEM

Sorry, but this item is not currently available from your library.

Try another library?
Sign out of this library

Other Topics