What's better, the USD or the euro? The only way to measure the value of a currency is by comparing it to another. And Thursday, the dollar pounded its euro friend like in one of the world wars. The euro dropped 0.6% in value compared to the dollar, to $1.36 (that's how much it costs to buy one euro right now. On Tuesday it was $1.38). A $0.02 drop in value doesn't seem like much (although it used to buy a tootsie roll), but so much crap is valued in either euro or USD, that the implications of the change is freaking massive.
A strong USD isn't as nice for America as you'd think. In fact, the Godfather of the economy, Ben Bernanke, would probably prefer a weak dollar. Cheap dollars means that our stuff is cheaper for foreigners to buy, which is good for the economy because we export more abroad. The strong dollar is a sign of a strengthening America in the global economy, but Uncle Sam would prefer a strengthening protein shake instead.
- Motor Vehicle Sales
- Three Fed Presidents and Chairman Ben Bernanke have big speeches
Fool contributors Jack Kramer and Nick Martell have no position in any stocks mentioned. The Motley Fool recommends Ford and General Motors. The Motley Fool owns shares of Ford. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
More from The Motley Fool
People's United Financial, Inc. (PBCT) Q4 2017 Earnings Conference Call Transcript
PBCT earnings call for the period ending December 31, 2017.
IBM Struggled With the Tax Man in the 4th Quarter
A long-awaited return to actual sales growth was overshadowed by a $5.5 billion one-time tax charge.
1 Big Improvement That Apple Needs to Bring to the New iPhone SE
It's time for a new display.