If the value of a dollar compared to other currencies is low, it makes American-made products less expensive compared to products made in the economies of those other currencies. That drives consumers to buy American and boosts the sales of those businesses.
So you probably have it backwards. When the dollar is down in the currency market, international businesses do better and should be going up.
It is worth pointing out, though, that comparing the exchange rate of currencies is only one of MANY ways of trying to figure out the value of a dollar, and not necessarily the best one. In a period of global inflation, all currencies would have less buying power but might be affected equally, for example. Depending on which value indicator you use, the value of a dollar might be both up and down on the same day.
Welcome to the rich tapestry of economics!
No, I have never noticed that.
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Along with the price of gas going up:)
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Foreigners are dumping government bonds and buying stock in American companies instead.
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So let me get this straight
A few years ago when the market was up the value of the dollar was fine right?
please give me a break that is due to inflation, and also to the person who said that liberals are responsible for the bad economy, I have to ask if that is so then why was the market so low under the administrations of Hoover, and Bush
look it doesn’t matter liberal or not that doesn’t predestine the economy for good or for bad, rather it is the actions taken by those people. We have had good liberals and bad ones, as we have also had good republicans and bad ones as well
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If the value of a dollar compared to other currencies is low, it makes American-made products less expensive compared to products made in the economies of those other currencies. That drives consumers to buy American and boosts the sales of those businesses.
So you probably have it backwards. When the dollar is down in the currency market, international businesses do better and should be going up.
It is worth pointing out, though, that comparing the exchange rate of currencies is only one of MANY ways of trying to figure out the value of a dollar, and not necessarily the best one. In a period of global inflation, all currencies would have less buying power but might be affected equally, for example. Depending on which value indicator you use, the value of a dollar might be both up and down on the same day.
Welcome to the rich tapestry of economics!
References :