For the eurozone, it implies a strong exchange rate vis à vis the dollar (and, by implication, the yen, as the Bank of Japan closely monitors the yen dollar exchange rate).

Any change in the exchange rate of the dollar affects the purchasing power of these countries, and therefore their real income.

Apart from the ongoing euro crisis, a stable renminbi dollar exchange rate is the key to renewed (dollar) exchange rate stability throughout Asia and Latin America as envisaged in the original 1944 Bretton Woods Agreement.

These changes are likely to make today s attempts to find an equilibrium yuan dollar exchange rate seem just as chimerical in hindsight as previous calculations of the yen dollar equilibrium rate.

The cost of buying protection against fluctuations in the euro dollar exchange rate declined last month to its lowest level in nearly five years.

First, FX is all about relative prices if the dollar appreciates some other currency must depreciate.

When the euro was launched, the US dollar euro ( ) exchange rate stood at 1.16 1.

The new data, by contrast, show that the exchange rate of the renminbi relative to the dollar is about right.

Until the recent crisis in Greece, the US benefited from a weak dollar euro exchange rate.

These are all plausible scenarios. But at least four factors could push the dollar euro exchange rate the other way.

A barrel of oil might still cost 90, but a 10 increase in the renminbi dollar exchange rate reduces the renminbi price by 10 .

6152 Importers' own foreign exchange

A more rapid increase of the renminbi dollar exchange rate would shrink China s exports and increase its imports.

The renminbi dollar exchange rate is, of course, only part of the story of what drives China s trade competitiveness.

That decline in the dollar exchange rate is necessary to shrink the very large trade deficit that the US has with the rest of the world.

The equilibrium yuan dollar rate is a chimera not because China s trade could never be balanced, but because the exchange rate alone does not determine equilibrium.

But if Asian countries move together, China will be more willing to let its exchange rate against the dollar become unstuck.

Between 2008 and June of this year, the Chinese held the renminbi at a fixed rate of 6.8 to the dollar.

For both China and America, the RMB dollar exchange rate is important for achieving growth and a more balanced current account.

In early October 2004, during and immediately after the election of the Transitional Federal Government, the exchange rate of the illegal currency appreciated from 25,000 to 18,000 shillings to the United States dollar.

The US could no longer maintain a fixed exchange rate between the dollar and gold the cornerstone of the postwar Bretton Woods system.

The first condition is America's continued willingness to tolerate a sharp appreciation of the dollar's exchange rate. Given warnings from US companies about the impact of a stronger dollar on their earnings not to mention signs of declining inward tourism and a deteriorating trade balance this is not guaranteed.

He points to the high volatility of the dollar euro rate over the last decade, and its adverse consequences for economic activity in Europe.

NEW YORK The battle with the United States over China s exchange rate continues. When the Great Recession began, many worried that protectionism would rear its ugly head.

This spring, the euro s exchange rate against the dollar reached an all time high, and central banks have increased the euro share of their international reserves.

Exchange rate of assessed contributions paid in US

BEIJING On October 26, the renminbi s spot exchange rate against the US dollar reached the upper limit of its floating range for the second consecutive trading day.

In the US, the inflation rate has also been depressed by the rise in the value of the dollar relative to the euro and other currencies, which has caused import prices to decline. This, too, is a level effect, implying that the inflation rate will rise once the dollar's exchange rate stops appreciating.

Created after WWII to finance temporary imbalances of the members of a fixed exchange rate system, the IMF has been in search of a cause since the demise of the dollar exchange rate system in 1971.

There is no reason, they conclude, why a change in the renminbi dollar exchange rate should have a first order impact on savings or investment in China, much less in the US.

The touchstone is currently the renminbi not so much because of China s bilateral relationship with the US, but because other emerging and developing countries monitor the renminbi dollar exchange rate in setting their own policy.

What then is future of the dollar?

There was no automated exchange rate control over transactions coming from field offices, which entails a risk of posting the wrong exchange rate.

There was no automated exchange rate control over transactions coming from field offices, which entails a risk of posting the wrong exchange rate.

China has played an important role in financing the US budget deficit in recent years, thanks to its effort to manage the renminbi s exchange rate against the dollar.

As the DM became a major international reserve currency during the 1980 s and 1990 s, large gyrations in the dollar exchange rate did, indeed, have at times a dramatic impact on the German economy.

This is not to say that the renminbi s exchange rate is a secondary issue.

When the Model T was launched and this is, by the way, all the figures that are adjusted to 2007 dollar prices Model T was 19,700 by Ford.

One report by a Korean research institute shows that the Korean economy will slip into recession if the yen dollar exchange rate nears 118, its average level back in 2007.

They can t lower the exchange rate to aid exports.

If so, there would be no need for China to worry about even a large jump in the renminbi s exchange rate.

For one thing, its purchasing power is already scraping along at a fairly low level globally indeed, near an all time low, according to the Fed s broad dollar exchange rate index.

China instituted a flexible exchange rate from July 2005 to the summer of 2008, and the renminbi gradually appreciated against the dollar cumulatively by more than 20 .

This reflected a decrease in real terms, due to inflation and the devaluation of the dollar.

This reflected a decrease in real terms, due to inflation and the devaluation of the dollar.