In a bear market the convert holds up better than the common stock, but in a bull market it will not rise dollar for dollar with the stock.
With the rise of dollar pizza, "I'm worried that our slice will be equated with that slice, when it's a totally different deal, " said Pino "Joe" Pozzuoli Jr.
When Europe's new currency was launched in January 1999, virtually everybody predicted that it would rise against the dollar.
But the yen's 10% rise against the dollar since July has meant that monetary policy has tightened over the summer.
So the currency's 0.4% rise against the dollar on the first day's trading after the announcement was partly reversed the following day.
The first prices to rise when the dollar falls are international commodities.
The stronger euro will temper the rise in the dollar price of oil, but it will also blunt the competitiveness of Germany's exports.
It also means their currencies should rise against the dollar, though the pace will depend, more than anything, on China's decisions about the yuan.
The rise in the dollar price reflects, among other things, an attempt to claw back some of the increased cost of selling in that currency.
The rise in the dollar has hit commodities, but by 2012, dollar weakness may reassert itself, they said, once the focus from troubles in the EU is removed.
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An American slowdown would reduce global inflation and cause other currencies to rise against the dollar, allowing central banks elsewhere to cut interest rates to boost domestic spending.
Especially given the weakness in the commodities in response to the rise in the dollar which was driven, at least in part, by talk of risk aversion in Europe.
Mr Greenspan said that even if China's currency did rise against the dollar, any reduction in imports from China was likely to be offset by higher imports from other Asian countries.
"We should assume that everyone's focus will shift to the U.S., " Mr. Kamiyama said, adding a further dollar rise and subsequent share boost will hinge on continuing signs of a U.S. economic recovery.
The answers to those questions can be found by examining whether the rise in nominal rates is also accompanied by rising real interest rates and if the rise in the dollar is due to a decrease in its supply.
Yes, sure, if the yuan (or renmimbi, either name works) were to rise against the US dollar then yes, Chinese labour as expressed in US dollars would rise in price.
And if Japan becomes more aggressive in QE than the US, the dollar may rise, as has already been the case in the last month with the dollar rising against the yen.
Since the beginning of the year there has been a 67% rise in the cost of oil in dollar terms, but only 52% rise for those who paid in euros.
He said in the short term, the dollar could rise, but ultimately its path is lower.
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Add it together and families in the 33% tax bracket could see their effective marginal rate paid on each additional dollar earned rise to above 38%.
It is a proposition that appeals to American consumers, whose voracious appetite for foreign goods is not likely to be slowed unless prices rise - and the dollar falls.
But policymakers' reluctance to let their currencies rise faster against the dollar means that their monetary policy is, in effect, being set by America's Federal Reserve, and is therefore too lax for these perkier economies.
"If U.S. economy improves, and the Bank of Japan's aggressive easing continues ... that will lead to further dollar strength and yen weakness, " said Kanda, who predicts the dollar will rise to 110 yen this year.
This forecast is lower than what many analysts expected, though Canon based its projections on assumptions that the yen will continue to rise against both the dollar and the euro, making Japanese exports more expensive in Western markets.
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There is therefore a powerful political rationale in Washington for stemming the dollar's rise against the yen.
Only one bank, Goldman Sachs, expects the euro-dollar rate to rise above parity within the next 12 months.
Indeed, South Korea has been the world's best-performing stockmarket in 1998, with a rise of 103% in dollar terms (roughly half of it due to currency gains).
If the dollar continues to rise, gold will be weaker.
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Since fund managers make their money by charging a percentage fee based on the assets under management, profits rise rapidly with each additional dollar that comes in the door.
The yen's rise against the New Zealand dollar, about 7% over the last week, has pretty much wiped out any advantage a trader had in parking money in the Kiwi.
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