Following the appreciation of baht by 4.5% so far this year, the Tourism Authority of Thailand projects that foreign tourist arrivals will decrease by around 6% this year.—nationalthailand.com
Category: MAT7
International Trade and Finance
Keywords: Comparative advantage, Exports, imports, Exchange rate, Balance of payments, International borrowing and lending
Parkin 14e Chapters 9, 15
Bade-Parkin 9e Chapters 18
Parkin-Bade Canada 11e Chapters 9, 15
Parkin-Bade Australia 2e Chapters 18
Parkin-Powell-Matthews 11e Chapters 25, 31
The Indian Rupee Fell to a Historic Low
India’s currency fell to a historic low of 88.62 rupees per U.S. dollar on September 23 as higher U.S. visa fees hurt India’s IT sector and prompted foreigners to sell Indian stocks. Additionally, the United States imposed tariffs of up to 50% on Indian goods.—khaleejtimes.com
Propping Up the Argentinian Peso
In September, the peso reached 1,475 per U.S. dollar, approaching the upper limit of its flexible exchange rate band. Argentina’s central bank, using scarce reserves to support the peso, is backing the President’s anti-inflation strategy, increasing the likelihood the band will be replaced with a more flexible exchange rate system.—economist.com
Yen Sinks After Japan’s PM Resigns
The yen fell broadly against the U.S. dollar, the euro, and the pound on Monday after the Prime Minister’s resignation, as investors anticipated a successor favoring looser monetary policies.—reuters.com
The U.S. Dollar and the Interest Rate Differential
The U.S. interest rate differential and U.S. dollar normally move in tandem, but the relationship broke down for a stretch in April when tariff announcements prompted investors to shed American bonds, sending bond yields soaring and the dollar plummeting. —economist.com
China’s Trade Balance with the World
China’s exports rose 4.8% and imports fell 3.4% in May from a year earlier.—cnbc.com The 1993 Trade Deficit with the World The last time China maintained a trade deficit with the world was in 1993.—macrotrends.net China’s Government Sector Balance in 2024 China had a budget deficit of 7.7% of GDP in 2024.—reuters.com
Euro Slides as Powell’s Hawkish Stance Bolsters US Dollar
Fed Chairman Jerome Powell stated that the Fed would not hesitate to raise interest rates if needed. With this news, the U.S. dollar strengthened against the euro.—fxstreet.com
Russia’s Ruble Hits a 17-Month Low
The Russian currency, the ruble, has lost nearly 40% of its value this year, further weakened by the drop in exports, combined with a jump in imports driven by strong domestic demand. Maxim Oreshkin, an economic adviser to Russian President Putin, blamed the central bank for the currency’s depreciation.—cnn.com
Yen’s Decline vs U.S. Dollar Rapid
The yen's depreciation against the dollar reflects Japan’s widening interest rate gap with the United States. Japan intervened last year to stop the yen's fall but has since refrained from further action. Vice finance minister, Masato Kanda says stepping into the foreign exchange market again has not been ruled out.—kyodonews.net
Yen Falls After Bank of Japan Maintains Ultra-Easy Policy
Last week, the yen hit a seven-month high against the U.S. dollar as many speculated that the Bank of Japan might follow other central banks by allowing rates to rise. But today the yen fell against the U.S. dollar after the Bank of Japan decided to maintain its ultra-easy monetary policy.—cnn.com