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October 29, 2007
Euros Verses Greenbacks
by Jack Lee
The U.S. dollar dropped to $1.4426 per euro, the weakest level since that currency was introduced in 1999. A weak dollar and strong Euro makes it easier for US manufacturers to export at competitive prices. Conversely, products coming from Europe cost more and there is less incentive to buy them here in the U.S.
In other areas of the financial news the U.S. inflation rate is low and it is expected that another prime rate cut is in the making for this week to further stimulate a faltering home sales market. 2008 has every indication as being a recovery year if the current trends among key indicators continue in the green.
Posted by Post Scripts at October 29, 2007 09:50 AM
Comments
This is scary... talk about making a trade deficit.
Posted by: Aaron Park at October 29, 2007 09:11 PM
Aaron, as odd as it sounds a weak dollar actually helps our trade deficit.
Here is a recent article on this from By Martin Crutsinger, AP Economics Writer:
"Falling Dollar Pushes Exports to Record Levels and Helps Lower
Trade Deficit More good news on the economy. After 22 straight quarters of economic growth we now have a trade deficit that is shrinking and record levels of exports.
The U.S. trade deficit fell to the lowest level in seven months, helped by record-high sales of American products and the declining value of the dollar. The deficit with China declined as imports edged down slightly following a string of high-profile recalls."
Posted by: Jack Lee at October 30, 2007 08:06 AM