Stronger Dollar Has Mixed Impacts on U.S. Exporters

By Jieying Ding

The rise of the dollar versus the euro and most other currencies sends a strong signal that U.S. economy is doing far better than its counterparts in Europe, achieving a 5 percent GDP growth in the third quarter of 2014, according to the New York Times. While the business community welcomes a stronger U.S. economy, things have gotten a little tough for U.S. exporters. Firms that must pay workers and buy raw materials in now depreciated currencies are saving money without having to cut pay, an advantage U.S. exporters don’t have. Although U.S. exporters are not complaining now, it’s likely that if the appreciation continues, they’ll pressure for diplomatic action to help reverse the trend.