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February 26th - Toyota Motor Corporation, the worlds largest automaker, saw sales growth in January, continuing its upward momentum after a stellar year. Data released by Toyota on Thursday showed that despite a slight decline in global production in January, sales, including those from subsidiaries Daihatsu and Hino Motors, rose 4.8% year-on-year to 887,266 vehicles, a record high for January sales. In January, sales of Toyota and Lexus brands increased by 8.1% in the United States and 6.6% in China. Domestic sales in Japan, however, declined by 2.7%. Toyotas resilience is particularly noteworthy in an automotive industry squeezed by tariffs, increased competition, and uncertainty surrounding the global electric vehicle transition. While competitors warned of billions of dollars in increased costs and sought to raise prices or shift production, Toyota has maintained its footing thanks to its scale and supply chain flexibility.On February 26, Wang Bin, Director of the Third Criminal Division of the Supreme Peoples Court, stated at a press conference held by the Supreme Peoples Court on "The Work of Peoples Courts in Punishing Telecommunications and Internet Fraud and Property Crimes According to Law" that the courts will focus their next efforts on cracking down on ringleaders and core members of criminal groups, "financial backers" of telecommunications fraud, human smugglers, organizations providing armed shelter for cross-border telecommunications fraud, as well as related crimes such as intentional homicide, intentional injury, kidnapping, and money laundering using virtual currencies and underground banks.On February 26th, Three Sheep (Hefei) Holding Group Co., Ltd. issued a statement clarifying that recently, a large amount of false information about "Three Sheeps successful backdoor listing" has been circulating online, causing public misunderstanding. To clarify the facts, Three Sheep Group solemnly declares: 1. As of now, Three Sheep Group and its subsidiaries have not submitted any form of backdoor listing, overall listing, or IPO application; 2. The online rumors of "Three Sheep listing on Nasdaq" or "backdoor listing through a US stock company" are merely related to overseas live-streaming operation business cooperation.On February 26th, Tesla China officially announced a new round of financing incentives for its vehicles. Orders placed before March 31st will be eligible for a 7-year low-interest loan on all models. For the three main models, Model 3, Model Y, and Model YL, an additional 5-year 0% interest plan is available, meaning no interest will be paid on the loan. This move is widely interpreted by the industry as another round of "disguised price reductions," aimed at further boosting sales. In January 2026, Tesla China released a similar promotional program, which at that time was valid until January 31st. Data shows that Tesla Chinas total wholesale sales in 2025 were 851,700 vehicles (including domestic deliveries and overseas exports), a year-on-year decrease of 7.08%.Hong Kong Exchanges and Clearing Limited (00388.HK): The Board of Directors declared a second interim dividend of HK$6.52 per share, to be paid entirely in cash; together with the first interim dividend of HK$6.00 per share to be paid in September 2025, the total dividend for the year will be HK$12.52 per share.

What factors cause a currency to appreciate?

Eden

Oct 25, 2021 13:27

Forex traders buy or ‘go long' on a currency pair in the hope that the base currency will appreciate relative to the quote currency. To understand currency appreciation, we should briefly look at the intricacies of a currency pair.

A currency pair is made up of a base currency and a quote currency. The base is always worth one, and the quote represents how many of that currency you would need to sell in order to buy one of the base currency.

For example, if the pair was EUR/USD, the euro is the base currency and the US dollar is the quote. If the quote price was 1.25, it means that you would have to spend 1.25 dollars in order to buy one euro.

Example of currency appreciation

A forex trader might take a long position on EUR/USD if it started to cost more dollars to buy one euro. In the above example, if the quote price increased from 1.25 to 1.50, it would be said that the euro has appreciated in value next to the dollar, since it now costs more dollars to buy the same number of euros as before.

What factors cause a currency to appreciate?

There are several factors which can cause a currency to appreciate. Two of the most important are:

Inflation and interest rates

Lower inflation rates typically mean that a currency’s value will appreciate relative to other currencies with higher inflation rates. This is because lower inflation rates cause interest rates to rise. A higher interest rate will attract more foreign investment in a country which in turn increases the demand for its currency. While this often causes the currency to appreciate, it is not always so finely cut.

Investor sentiment

Currencies can also appreciate depending on how ‘safe’ investors view the country's central bank and government.

For example, Switzerland has long been considered a safe haven for investors, which means the currency appreciates in times of economic crisis. This is because of its historic neutrality in wars and tendency towards political stability and relatively free monetary policy; as well as its openness to foreign investment. These policies have made the Swiss franc one of the most heavily-traded currencies in the world.

Investor sentiment heavily influences the supply and demand for a currency on the open market, which are perhaps the largest drivers behind whether a currency appreciates or depreciates. The currencies which are most susceptible to influence by supply and demand are those that operate on a floating exchange rate.


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