Thursday, January 29, 2015

“Every Silver Lining has a Touch of Grey”

Some U.S. firms are starting to have profitability problems because of the appreciation of the dollar.

It sounds kind of dumb at first, but when thinking about exchange rates, saying something like an appreciation/depreciation is good for everyone except those it’s bad for is actually fairly accurate.

In this case, the dollar is strong because some of the other big economies — the European Union and Japan primarily — have been doing relatively poorly.

See the article entitled “Strong Dollar Squeezes U.S. Firms” in the January 27 issue of The Wall Street Journal.

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