The decline, the company said, was driven by falling unit sales and currency rate shifts during the quarter.
Together with other currency rate adjustments, the company is looking at a JPY 50 billion drop in operating profit from this change, and is factoring this into profit forecasts.
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The carry trade involves a currency play in which a lower interest rate currency is sold to purchase a currency with a higher interest rate.
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There is always a tension between having a common means of exchange, a useful and good thing, and having to have the same interest rate, the same external currency conversion rate, not necessarily a good thing.
In spite of what they believe is an obvious connection between the currency exchange rate and the trade deficit with China, the empirical evidence does not support such a connection.
The Minister instructed the teller that there was to be a new and more favorable currency exchange rate for the day and the financial instrument was to be converted at this new rate.
Mr Bhalla also takes issue with a suggestion that the Reserve Bank adopt an exchange-rate target a band of plus or minus 5% around a currency-weighted rate.
My central prediction is that currency and interest rate swings will make for a tricky international economy in 2005.
If a central bank buys foreign currency to hold down the exchange rate of the domestic currency, it creates more domestic money.
And a more serious drawback, seen in Thailand, is that by appearing to eliminate currency risk a fixed rate encourages firms and banks to borrow heavily in foreign currency at cheaper interest rates than on domestic funds.
As opposed to having Greece deal with its own debt issues, using their own fiscal, monetary and currency, measures, EU countries now have to coordinate the opinions of the 26 other member countries and factor in the implications on 27 different economies and cultures with a single, coordinated currency and interest rate framework.
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Yet Argentina's experience provides clear evidence that even currency boards, where the rate is fixed by law, and where the domestic currency has to be backed by hard-currency reserves, are not immune from crises.
Like any fixed exchange-rate system, a currency board offers the prospect of a stable exchange rate, which can promote both trade and investment.
Ecuador dollarized its currency, pegging the exchange rate of its peso to the dollar, and Panama has used the dollar alongside its own currency for decades.
Ending a national currency and an exchange rate means that an exchange-rate crisis is not possible.
However, he also tolerated a legal parallel market that kept the country supplied with hard currency at a higher rate (providing countless opportunities for arbitrage).
Since Zimbabwe's inflation is a tad higher than America's, nobody wishes to surrender hard currency at the official rate of 55 Zimbabwe dollars to one American dollar.
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And the pace of sales is likely to be dictated largely by movements on the world's currency markets to bring in foreign currency at the best rate possible.
Some big players borrow with an interest rate-currency straddle.
To maintain its currency peg, the People's Bank of China has to create enough yuan to satisfy foreign demand for the currency at the going rate of 8.3 yuan to the dollar.
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Here you can see how the gold standard system can expand and shrink the money supply as appropriate, as part of the mechanism that maintains the value of the currency at its parity rate.
While these policies - clamping down on loans, currency appreciation and interest rate rises - have been effective inflation fighting tactics, they have proven to be a drag on growth for the corporate sector.
The currency's unofficial rate has strengthened against the dollar over the past two years as exports of rice, beans and energy have increased, while restrictions on imports prevented the need to send dollars abroad.
The currency's unofficial rate has already strengthened against the dollar over the past two years as exports of rice, beans and energy have increased, while restrictions on imports prevented the need to send dollars abroad.
The bank, along with most of the other major UK High Street lenders, has also been found culpable in recent years of mis-selling unnecessary payment protection insurance to mortgage borrowers, and overly complex, over-priced interest rate and currency hedges to small businesses.
Yet in mad Minsk the central bank stood by an official rate of 33, 460 roubles to the dollar, and currency kiosks were obediently posting a rate of 42, 000.
In order to preserve the euro, the single currency and thus also the single interest rate area that goes along with a single currency.
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The currency markets might greet an Italian rate cut by dumping lire, which would wreck Italy's hopes of joining the single currency in 1999.
The country's current foreign-exchange system, which involves a fixed "official" exchange rate that makes the currency, the kyat, more than 100 times as valuable against the dollar as the black-market rate, is so confusing that many foreign companies have refused to re-enter the country even if Western leaders ease sanctions against Myanmar, the country also known as Burma, as expected later this year.
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