Quote:
Originally Posted by thachp
Higher currency rate (US$) will results in lower export, and higher import. American firms produce their goods in country with lower currency rate to reduce their costs and profits maximization (this is probably one of the reason why China always try to keep their currency low. China wants to attract foreign firms + investors. Therefore, increasing their GDP). Local consumers will purchased imported goods at the same US$. The winners are the firms that made their product in lower currency rate country and country where they produce their goods, tariff expenses is also an exception.
|
I think you are right but there is sooo much politics now which have huge affects on an economy and then there is the invisible hand of huge banks that support or attack currencies.
I believe unless you are on the inside you can only wait and see what happens next then jump in and out before a reversal. And I think that is why 90% alway loose out.