Thursday, October 14, 2010

Is The Dollar Toast?

The dollar has depreciated considerably over the past few weeks. The weak dollar is indeed good news for firms like IBM, Coca-Cola, and McDonalds because it indicates a future rise in net exports. However, continuous decrease in the value of US currency might have a negative impact on the dollar's status.
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2 comments:

  1. ChristianOctober 16, 2010 at 10:14 PM

    The weak dollar certainly will have a negative impact. This means out-sourcing will be more difficult. In addition, US travelers that are abroad won't have the advantage that the dollar once provided.

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  2. Wyatt H.October 20, 2010 at 9:16 PM

    "We're not in a danger zone yet. However, the dollar is rapidly depreciating so the time to worry could come up more quickly than people realize," said Andrew Busch, global currency and public policy strategist with BMO Capital Markets in Chicago.

    ^ This quote concerns me. Perhaps we should buy euros now if this prediction is true?

    Again, the dollar being depreciated is bad when it comes to exchanging the currency. Although, just maybe this will allow the U.S. to reduce imports and increase exports.

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