The $ is Finally Bouncing Back

With rising interest rates in the U.S. and with problems in Europe, such as the violence in France, the U.S. Dollar has gained ground on the Euro. This will be interesting to see how this will affect U.S. exports to Europe. With the Euro now able to buy less American goods, exports to Europe might suffer, however, Americans will now be able to purchase more goods from Europe. So, it's kind of a double-edged sword. What do you guys think? Is it better to be able to buy more or sell more?

1 comment:

Dr. Tufte said...

It is always better to buy more - life is about consumption not production. Everyone needs to learn the life lesson that people who tell you that production is more important than consumption are controllers who are not looking after your best interest.

Having said that, this post points out that exchange rates are just another price, and price changes are neither good or bad.