dollar rising

aliqueenb

k im a curious online american clothes buyer lol
and this dollar rising stuff is kinda sucking
please explain why this is happening
i thought the american economy was going crap too?

Tony Broke

Other economies are much much worse :pac:

Look at the Yen for the opposite!

Time Magazine

The "price" of any currency is as subject to supply and demand as any other product. Do you understand supply and demand? That'll make explaining it much easier.

Green Hornet

Should be good for our economy though shouldn't it? It will make exporting to the US cheaper for our US based companies?

Time Magazine

Green Hornet wrote: »

Should be good for our economy though shouldn't it? It will make exporting to the US cheaper for our US based companies?

And importing American goods (for production) more expensive. It's not a simple one-way process.

Green Hornet

The Economist wrote: »

And importing American goods (for production) more expensive. It's not a simple one-way process.

Good point.

I'm a chemist working for a US based company. I should stick to the chemistry.

Time Magazine

Sorry, shouldn't have been so short in response. Basically you're right; because we sell more to America than we buy, we like the dollar to rise relative to the Euro. So indirectly you've just become cheaper to employ. This will help the economy.

But, as aliqueenb points out, this bigger economy does have the disadvantage that we can't buy stuff from America as cheaply as before. So it's certainly a two-way process, but the net effect is probably positive/beneficial for Ireland. (However the effect will likely be very small.)

leninbenjamin

The Economist wrote: »

Sorry, shouldn't have been so short in response. Basically you're right; because we sell more to America than we buy, we like the dollar to rise relative to the Euro. So indirectly you've just become cheaper to employ. This will help the economy.

But, as aliqueenb points out, this bigger economy does have the disadvantage that we can't buy stuff from America as cheaply as before. So it's certainly a two-way process, but the net effect is probably positive/beneficial for Ireland. (However the effect will likely be very small.)

You're right. at the end of the day it makes no difference. yes we become cheaper to employ, but we also become less profitable (well those subsidiaries who sell to the European market that is, which is most really)

aliqueenb

dont do economics but supply and demand hmm, when demand goes up supply? ah crap thought i knew it, its some kinda graph thing lol, theres a poster of it in my business class, i suppose if demand goes up prices might just get higher, or is that with inflation and more money higher prices, do tell me!
anyways yeah point is it sucks for me and my shopping habits

SheroN

How strong do you guys reckon the dollar will get? Do you reckon we will see parity with the euro again soon?

daveirl

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