61. A slowdown in production increases the cost of each vehicle produced, as fixed expenses are spread over a smaller number of products. 62. A stronger dollar is inflationary since it increases the cost of imported goods and bolsters earnings outlooks for domestic exporters. 63. A weaker currency would cut the value of Indonesian holdings for foreign investors in home currency terms and increase the cost of repaying foreign debt, depressing corporate earnings. 64. A weaker ringgit increases the cost of payments on foreign currency debt, which hurts large borrowers like Telekom and Tenaga. 65. A weaker rupee would increase the cost of repaying dollar-denominated loans. 66. A weaker currency increases the cost of borrowing abroad by Malaysian companies like Tenaga and phone company Telekom Malaysia Bhd. 67. A weaker currency would cut the value of Indonesian holdings for foreign investors in home currency terms and increase the cost of repaying foreign debt for local firms. 68. A weaker peso can increase borrowing costs of those companies holding dollar-denominated debt. 69. A weaker currency makes peso-denominated securities, like equities, worth less and increases the cost of imported raw materials and dollar-denominated loans. 70. A weaker yen also increases the cost of imports, which could reverse the fall in domestic prices for goods, services and property. |