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Reserve accumulation increases foreign exposures to American monetary policy while simultaneously introducing a destabilising force into the American economy.
Its willingness to dabble beyond its borders marked it out for suspicion when crisis struck and doubts about its foreign exposures grew.In November 2008 the RBI had to lend foreign currencies to Indian banks to help them meet the obligations of their foreign branches.
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Some fret about taking on foreign exposure or currency risk.
He advised investors to include some foreign exposure in a stock portfolio, but he would prefer developed markets rather than emerging markets.
It also hedges at least 75percentt of its foreign exposure back into dollars, giving it a return through the second quarter of 3.8percentt.
Lars Lokke Rasmussen, a 44-year-old who has previously had the health and finance portfolios, has domestic experience but almost no foreign exposure.
THE European fiscal crisis isn't just raising investor concerns about how much foreign exposure to have, but also about how those bets should be made.
"That has given our team lots of foreign exposure and that is why we have done well," said Bhupinder Singh, vice president of the I.B.F.
The Pimco Foreign Bond fund states on both the company Web site and in the prospectus that it hedges at least 75percentt of its foreign exposure back into dollars.
Foreign exposure was also a key to success for Waddell & Reed, which managed several top-performing general stock funds, including the Waddell & Reed Advisors Vanguard fund, Waddell & Reed Advisors Tax Managed Equity and Ivy Large Cap Growth.
While Mr. Heebner's CGM Realty fund has had foreign exposure as well, he seems to be shifting his attention back to the United States these days and, specifically, to REITs.
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