Is a Weak Dollar Really So Terrible?
Eric Weiner NPR News
10, 03, 07 11:00 ~12:21
A couple days ago I heard the exchange rate of the Korean currency against the U.S dollar was the lowest point after the lapse of a decade. Before I came to Austin I was really concerned about the won-dollar exchange rate because I already decided to study English in the U.S and I really interested in investing stocks; Korean stocks are very related to dollar’s value. And also my major is Business so I am supposed to study and know that kinds of things.
Eric Weiner NPR News
10, 03, 07 11:00 ~12:21
A couple days ago I heard the exchange rate of the Korean currency against the U.S dollar was the lowest point after the lapse of a decade. Before I came to Austin I was really concerned about the won-dollar exchange rate because I already decided to study English in the U.S and I really interested in investing stocks; Korean stocks are very related to dollar’s value. And also my major is Business so I am supposed to study and know that kinds of things.
Anyway this week, i listen to weakness of American dollar. What effects does weak dollar cause?
Nowadays, dollar is very weak compared to other currencies. For example, In 2002, you could buy a euro for 86 cents. Today, it will cost you $1.40. Likewise, it is unassailable fact recently and it seems to go on continuously. Basically weak dollar has pros and cons. It sounds ominous, but in American case, there are a lot of advantages. For example, the weak dollar makes American exports cheaper and many Americans don’t want to travel to abroad, but other nation have a opposite view of American. Therefore, helps close the trade deficit. But over the long term, the value of a country's currency is seen as a verdict on the overall health of its economy.
Nowadays, dollar is very weak compared to other currencies. For example, In 2002, you could buy a euro for 86 cents. Today, it will cost you $1.40. Likewise, it is unassailable fact recently and it seems to go on continuously. Basically weak dollar has pros and cons. It sounds ominous, but in American case, there are a lot of advantages. For example, the weak dollar makes American exports cheaper and many Americans don’t want to travel to abroad, but other nation have a opposite view of American. Therefore, helps close the trade deficit. But over the long term, the value of a country's currency is seen as a verdict on the overall health of its economy.
On the other hand, some economist says weak dollar makes a lot of problems more than advantages. And it also creates a lot of ripples all over the world. It affects strongly other countries economy. And most investors are going to be reluctant to invest stocks in the U.S because they want to compensate for the weak dollar, and the U.S should really care about inflation; however, so far, it is ok, under 2%. As European manufactures give the U.S a break because American market is very attractive and big and very close connected to China market and currency. Eventually dollar’s value is going to up and the U.S
As one of expert’s remark, "America is on sale", it' seems same as discount at a department store. So the U.S and the other nation should use this big chance economically.
As one of expert’s remark, "America is on sale", it' seems same as discount at a department store. So the U.S and the other nation should use this big chance economically.
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