The U.S. Dollar has recently rebounded from its three year low. What’s behind this interest in The Dollar? John Osborn of the Capital Partners says, “People are anticipating interest rates going up so they are anticipating the dollar becoming stronger. And…of course everyone wants to be ahead of the curve and buy early.”
University of St. Thomas’ Dr. Daniel Perez Liston has another slant, “Our economy is strong and robust now which leads to a stronger dollar.”
So ---- is this good or bad for us? Liston’s answer: “YES!”
“If you want to buy foreign items like a Mercedes or you want to travel abroad, it’s good. You can travel and buy more cheaply. But it could add to our trade deficit because other countries might not want to spend more money on similar products they can by more cheaply from other countries.”
Osborn concluded, “it can be good for the economy – but we will have to stay in front of the inflation curve.”