Forex Blog: Currency Trading News & Analysis.

May 4th 2006

USD may affect US debt/equity markets

In the last few months, the USD has plummeted against most major currencies, in some cases dropping to nearly one-year lows. Many analysts are predicting the USD will begin to harm certain sectors of the US stock and bond markets. Both manufacturers that import raw materials, and retailers that import finished products, will face increasing costs and lower profits. On the other hand, US companies that have significant overseas operations and/or international sales will certainly benefit from the dollar’s decline. For those of you who are skittish about investing directly in forex markets, these companies represent excellent proxies for a bet against the USD. The Wall Street Journal reports:

The Group of Seven leading industrial nations said emerging economies should let their currencies appreciate to help reduce the large trade surpluses these countries have with the U.S…

Read More: Dollar’s Slide Could Roil Stocks

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Posted by Adam Kritzer | in Investing & Trading, US Dollar | No Comments »

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