Quote:
Originally Posted by Shok
The dollar is weak because interest rates are low.
This is a good thing because it regenerates domestic exports.
More business comes from outside the states.
The down side.......so it costs a little more to travel to europe, big deal.
When the feds raise rates, the dollar will strengthen.
This happens a lot over time, it's a continual process.
If say the dollar stays weak for a long time, it will only improve our trade deficit. But it will never remain weak permanently because the rates will begin to climb soon enough bringing foreign currency investments.
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You think travel is the only thing it effects? you pay more for everything you import, which is a lot in the states. Wood, oil, Meat among other things. Which means higher prices for a lot of things.