The US Dollar continues to fall

[Wag]

Wow. Scary stuff- the Canadian Dollar is almost $.75 to the US Dollar, which is the highest I can remember it in years.

I've been watching things over the last month and the Dollar has been dropping consistantly. How low can it go?

 

[Dari]

good. it means our exports are cheaper. This is great news for canadians and any country that has a strong currency against the dollar. the consumer gets more choices because (american) imports are more price-competitive.

 

[burnedout]

Originally posted by: Dari
good. it means our exports are cheaper. This is great news for canadians and any country that has a strong currency against the dollar. the consumer gets more choices because (american) imports are more price-competitive.

Indeed. Additionally, U.S. multinational corporations with strong European subsidiaries stand to benefit as well. Companies such as MCD, KO, PG, GM, F, CL, MO could announce some nice earnings next quarter due to currency devaluation. In my opinion, blue chips should perform very well this year.

 

[Dari]

Originally posted by: burnedout

Originally posted by: Dari
good. it means our exports are cheaper. This is great news for canadians and any country that has a strong currency against the dollar. the consumer gets more choices because (american) imports are more price-competitive.

Indeed. Additionally, U.S. multinational corporations with strong European subsidiaries stand to benefit as well. Companies such as MCD, KO, PG, GM, F, CL, MO could announce some nice earnings next quarter due to currency devaluation. In my opinion, blue chips should perform very well this year.

that's definitely true if they didn't hedge their costs against currency fluctuations.

 

[BOBDN]

Originally posted by: Dari
good. it means our exports are cheaper. This is great news for canadians and any country that has a strong currency against the dollar. the consumer gets more choices because (american) imports are more price-competitive.

What do we manufacture for export any longer?

I mean, how many weapons systems can we sell? :Q

 

[Dari]

Originally posted by: BOBDN

Originally posted by: Dari
good. it means our exports are cheaper. This is great news for canadians and any country that has a strong currency against the dollar. the consumer gets more choices because (american) imports are more price-competitive.

What do we manufacture for export any longer?

I mean, how many weapons systems can we sell? :Q

WTF is wrong with you? Why are you trying to troll on this topic? It doesn't matter whether or not the product was made here. As long as it's costs are in dollars, currency fluctuations can cause profit fluctuations. In this case, there will be extra profits for american companies that have their costs in dollars.

 

[burnedout]

Originally posted by: Dari

Originally posted by: burnedout

Originally posted by: Dari
good. it means our exports are cheaper. This is great news for canadians and any country that has a strong currency against the dollar. the consumer gets more choices because (american) imports are more price-competitive.

Indeed. Additionally, U.S. multinational corporations with strong European subsidiaries stand to benefit as well. Companies such as MCD, KO, PG, GM, F, CL, MO could announce some nice earnings next quarter due to currency devaluation. In my opinion, blue chips should perform very well this year.

that's definitely true if they didn't hedge their costs against currency fluctuations.

Excellent point. This scenario has certainly occured in the past with negative results. I once read an article in Barron's describing currency trading departments for some of the larger corps. What was surprising was the significant resources that these corps actually designate towards minute-to-minute currency exchange. Dow Chemical has one particular currency trading desk in Midland, MI which is fairly large.

 

[burnedout]

Originally posted by: BOBDN

Originally posted by: Dari
good. it means our exports are cheaper. This is great news for canadians and any country that has a strong currency against the dollar. the consumer gets more choices because (american) imports are more price-competitive.

What do we manufacture for export any longer?

I mean, how many weapons systems can we sell? :Q

Ah yes, BOBDN and his contemporary conspiracy theory of the day. To answer your question if one might define it as such, capital goods, tobacco, agriculture, electronics, machinery. Weapons systems account for a comparatively small amount of our international volume, if I remember correctly. After work and class tonight, I'll post the breakdown to disprove yet another myth you seem so intent on proliferating.