His reasoning is simple and global: \u201cMany central banks are chopping interest rates to push their currencies down. They all hope to spur exports to offset internal weakness.\u201d<\/p>\n
A moderate depreciation of currency is, indeed, especially good for countries who rely heavily on exports. A weaker currency makes export goods cheaper in foreign markets.<\/p>\n
While overseas firms benefit from currency depreciations, some U.S. companies have been hurt by\u00a0appreciation of the dollar. U.S. firms from McDonald\u2019s Corp. to Apple Inc. all reported shrinking or lower-than-expected overseas revenues when they converted foreign currencies into the dollar.<\/p>\n
But Americans still benefit at places like the gas pump.<\/p>\n
\u201cThe dollar is the global reserve currency,\u201d says Adolfo Laurenti<\/a>, managing director and chief international economist of Mesirow Financial. \u201cImport goods, such as commodities and energy, are priced in dollars. They get cheaper as the dollar strengthens, which is good for U.S. households.\u201d<\/p>\n Economists believe some of the money saved from falling energy prices will be spent to bolster other sectors in the economy.<\/p>\nA New Currency War?<\/h1>\n
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