world economics according to Jeff

[Michael Eisenstadt]

Nightbyrd wrote:

> The Dollar is now down to 92 cents against the Euro.

The Euro as of Friday was trading at $1.07. At its lowest
the Euro was worth around 89 cents. When the Euro 
was first issued in 1998 it was set as worth $1.19 but 
lost over 25% of its value subsequently. Its recent
regain of some of its lost value against the dollar
signifies next to nothing. As the dollar's value 
against the Euro and other currencies drops, the main 
effect is to INCREASE American exports because they 
are then cheaper on the world market. The very strong
dollar in the last few years has been strongly opposed
by American businesses which export for the reason
explained above. The change in the change rate also
has the effect of making imports into the US MORE 
expensive thus making made in USA products more 
competitive at home

Mike