Exact(7)
A higher currency helps.
Borrowing costs would shoot up to reflect higher currency and inflation risk.
But expenses at the newspaper division increased 12percentt because of higher currency exchange rates, employee medical benefits and newsprint costs.
Hypotheses for why home bias exists to the degree it does have focused for years on structural factors, such as the fact that investing outside one's country entails higher currency risk and transaction costs.
While the Bank was clearly sensitive to the impact of a higher currency on the export sector, analysts said a rate rise by the summer was still on the cards because of the strength of household borrowing.
In its 2003 survey of 800 manufacturers, the Australian Industry Group, one of the nation's biggest employer groups, found that 57percentt of companies blamed the higher currency for lower competitiveness, with only 17percentt saying it had helped.
While the Canadian economy has been able to withstand the effects of higher currency values, the trade surplus is beginning to erode.
Similar(1)
The central banks of both India and Australia raised interest rates this week despite sharply higher currencies.
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