From:sochi
Many experts fear that the US dollar interest rate hike will affect the pcb industry by devaluing the dollar. This article focuses on the US dollar interest rate hike and its impacts on the IC industry. The article first defines what is currency rate and how does it affect IC products. It then explains how increase of the basic interest rate affects currency value. Lastly, it analyzes impact of the currency fluctuation on IC products and its possible solutions to deal with it.
The US interest rate hike is likely to have a positive impact on the pcb industry. It will contribute to strengthening of the US dollar against other currencies and that in turn would help many US based suppliers capture some additional global market share.
A few weeks ago, the Federal Reserve voted to raise interest rates by one quarter of a percentage point. This had a ripple effect on global markets that was felt in India and it's flow on effect for our industry as well. So what is the impact of the US Dollar Interest rate hike on our industry?
Production costs are rising because of a weaker US dollar. The global economy is now paying the price for slow growth and monetary tightening from the world's largest economic power. This is where negative interest rates enter the picture. By implementing negative interest rates, central bankers all over the world one of their final, best tools to combat low inflation.
