The Euro reached a record high yesterday (Thursday), which was worth $1.4065. The Canadian dollar also reached a record high, which was at par with the American dollar for the first time in 30 years. Traders are now foreseeing a slower American economy and a more economic growth overseas. The falling dollar has had an impact on many things. It has helped “lift American exports by more than 11% in the first 8 months of the year. Businesses with large foreign operations can expect a lift in profits when they convert their overseas earnings into dollars.”

“The market is pricing in a shift in Fed policy downward, and the rest of the world is not matching. That can only mean a cheaper dollar” - Carl B. Weinberg, chief global economist at High Frequency Economics

Many businesses are experiencing growth because the weaker American dollar has made them more competitive in the world market. Jason Meyers the chief economist of the Canadian Manufacturers and Exporters stated, ““It makes a lot of people feel pretty good. They can go on trips to the States again; they can go on trips to Europe. After 16 years of always seeing their currency in an inferior position, Canadians now have strong buying power.”

[via NYTimes]

Tags: Business, Currency, Dollar, Economy, Fed, Investing, Trading

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