Dollar Falls — Good News For US Manufacturers

By July 22, 2006General

On Friday, the dollar fell against most major currencies. However, while “falling” sounds bad and “rising” sounds good, it is not necessarily so — at least if you’re talking about currencies and if you happen to be a manufacturer. When the dollar falls, it makes US goods cheaper abroad. That’s good news for US manufacturers who are exporters, and there are plenty of them — large and small — in our membership. The dollar is one reason why (as our own Dave Huether noted here just a week ago), that exports surged by $2 billion in May.

So when you hear news of the “fall”, don’t despair. It may actually be good news after all.