How To Salvage The Sinking Dollar
As if the anemic U.S. economy didn't have enough problems, add a sinking dollar to the list. The greenback has dropped some 20% against the German mark in the last year, hitting a record low. Against the yen, the dollar is down some 8.5%. This is good news for U.S. exporters, mainly commodities producers, who use price as their major competitive tool. But a weaker dollar feeds inflation domestically and forecloses the Federal Reserve from pushing interest rates lower--about the only way to get the sagging economy going.
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