Sinking Dollar

[usakos]

The US dollar has been dropping like a brick. Money Magazine's Paul J. Lim shows you how to protect yourself. Read more here.

Are you affected?

Whether you are a U.S. based doing business overseas or based outside of the US doing business in the US, how affected are you by the rapidly sinking US dollar?

[Purple]

a sad day for all the american businesses, well not exactly, but the week dollar although it is bad it has some good to it.

[Allurre]

yep.. as expected.

[Gaulkin]

Ive had to readjust my stock portfolio to companies that have the majority of their business outside of the united states.

[exstatic]

I wonder how this will affect the online economy.. when most of the currency used is US..

[jasaunders]

I wonder how this will affect the online economy.. when most of the currency used is US..

It won't have any major effect. Online purchases are usually small ticket items. It is not likely these will increase exports because of transactional and logistical costs.

[Purple]

now people acting like this is the first tim this happened.

[Nigami Enterprise]

Its great being in Australia at the moment when dealing in big dollars overseas. My forecast's where done when the australian dollar was at 70cents us, now its at 90 cents when im actually making the transactions so im up thousands of dollars im just hoping it will come back done late next year when i will be exporting out of Aus.

[richkid]

I'm loving it because now the aussie dollar is almost equal to the Us, amking all the work I get done in the US so much cheaper

[Purple]

it actually bounced back 5 cent yesterday, that a big jump man, we may see a trend of it going back down or it will just be uncertainty from here on.

[exstatic]

Im in the UK, so its even better it means basically everything is half price.. people are even flying to new york from here to do their xmas shopping as it works out cheaper when including the flights!

[stand856]

Im in the UK, so its even better it means basically everything is half price.. people are even flying to new york from here to do their xmas shopping as it works out cheaper when including the flights!

Wow, now that's really shows how bad the economy is here.

[leggomygreggo]

I know i will probably get scorned for this but i dont really understand how the fluctuation of the dollar hurts overseas economy=( Sorry for the really stupid question

[ltressel]

It's really an interesting concept. When the dollar fluctuates, it has ripple effect on the world economy.

For example: For us Americans it sucks because anything we buy as foreign goods would cost us more because the dollar is weak. However, other industries like tourism, excel in times like this because Europeans and others for example come out here because their money (Euro, Sterling) is worth more. They buy up our real estate, businesses, US products etc.

As for us, it sucks because if you travel to Europe your money is cut right in half. Your dollar is 50p in the UK.

Now in a bigger spectrum if the dollar is weak economies like Japan, suffers because its dependent on a strong dollar or strong US Economy.

I tried to water down this cause and effect with the dollar. I'm sure others can pitch in some more. I hope it helps leggomygreggo.


LT

[leggomygreggo]

Thank you LT I think i get it now. Very great advice