The Weak Dollar and What it Means to the Supply Chain

The United States dollar has been declining at a 3-5% annual rate for about the past six years. The downward trend accelerated in mid 2007 spurred on by the cut in US short-term interest rates and international concerns about the sub-prime mortgage crisis. After reaching historical trading lows against the euro, the dollar exchange rate has steadied recently. However, the full consequences of a weak dollar on the US economy and markets create a ripple-like effect.

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