2008 Woodie Awards
The American dollar hits all time low
by Tim Suda
Issue date: 3/17/08 Section: Connections
For the past few weeks, the value of the dollar is sinking. Last week, the value sunk to a record low against the euro. This loss of value is making business deals across continents more and more expensive for America.
In Europe last week, the euro was at an all-time high of over $1.56. The euro, the unified European currency, was introduced less than a decade ago. The euro's value was once as low as 82 cents. In Japan, the dollar dropped against the yen, exchanging below 100 yen for the first time in over 12 years. Also, the Swiss franc has over taken the dollar to where the dollar is now worth less than one franc. At one point, the dollar was worth more than four francs.
The loss in the dollar's value and increase of the euro came after a major American banker, Bear Stearns Cos., reported that it was in financial trouble.
The value of the dollar decreasing has not had any major effects on consumers across the nation so far. Oil prices have slightly risen, but if one looks at the rise in oil prices over the past few months and years compared to the value of the dollar, there isn't really a trend between the two. Oil has been going up for a while, and will keep going up.
Many financial investors say that Americans have nothing to worry about in the near future. We shouldn't feel the effects of a weak dollar for a couple of years, and that is only if nothing happens. Fortunately, the Federal Reserve is working on ways to get the dollar back on the rise.
That may sound all good and well, but unless something is done, American companies will have to spend more money to get goods into the states. That would mean more cost for the American consumer.
Fortunately, much of the global economy is reliant on American services for one thing or another. For one, America is the largest consumer. Because of this, the global economy, and therefore countries around the world don't want to see America fail.
A few students were asked if they were worried about the decline of the value of the dollar.
"I just don't know,"says freshmen John Daniel King.
"I didn't even know the dollar was so low,"says sophmore Devin Hussey.
"I don't really know enough to comment either way,"says Sophmore Catie Buchanan,
"I'm surprised. I did not know that the dollar had gotten so low. I'm a little worried, but I think we will be ok," says graduate student Kris Chesterman.
"I'm not really worried…not yet anyways," says sophmore Laura Pucket.
"It's not good for the economy, but in the end it will balance out. It may get worse, but the global economy will help to fix the problem," says senior Thomas Dunbar.
"It scares me. It is very troublesome that the currency is that low. In the long run, I do think the economy can handle it," says junior Amy Naylor.
In Europe last week, the euro was at an all-time high of over $1.56. The euro, the unified European currency, was introduced less than a decade ago. The euro's value was once as low as 82 cents. In Japan, the dollar dropped against the yen, exchanging below 100 yen for the first time in over 12 years. Also, the Swiss franc has over taken the dollar to where the dollar is now worth less than one franc. At one point, the dollar was worth more than four francs.
The loss in the dollar's value and increase of the euro came after a major American banker, Bear Stearns Cos., reported that it was in financial trouble.
The value of the dollar decreasing has not had any major effects on consumers across the nation so far. Oil prices have slightly risen, but if one looks at the rise in oil prices over the past few months and years compared to the value of the dollar, there isn't really a trend between the two. Oil has been going up for a while, and will keep going up.
Many financial investors say that Americans have nothing to worry about in the near future. We shouldn't feel the effects of a weak dollar for a couple of years, and that is only if nothing happens. Fortunately, the Federal Reserve is working on ways to get the dollar back on the rise.
That may sound all good and well, but unless something is done, American companies will have to spend more money to get goods into the states. That would mean more cost for the American consumer.
Fortunately, much of the global economy is reliant on American services for one thing or another. For one, America is the largest consumer. Because of this, the global economy, and therefore countries around the world don't want to see America fail.
A few students were asked if they were worried about the decline of the value of the dollar.
"I just don't know,"says freshmen John Daniel King.
"I didn't even know the dollar was so low,"says sophmore Devin Hussey.
"I don't really know enough to comment either way,"says Sophmore Catie Buchanan,
"I'm surprised. I did not know that the dollar had gotten so low. I'm a little worried, but I think we will be ok," says graduate student Kris Chesterman.
"I'm not really worried…not yet anyways," says sophmore Laura Pucket.
"It's not good for the economy, but in the end it will balance out. It may get worse, but the global economy will help to fix the problem," says senior Thomas Dunbar.
"It scares me. It is very troublesome that the currency is that low. In the long run, I do think the economy can handle it," says junior Amy Naylor.
Be the first to comment on this story