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Declining U.S. Dollar Is a Drag for Europe
- By Didier Delmer
- Published 6/12/2007
- Economy, Markets
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Didier Delmer
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The decline in the dollar, which has been steadily losing value since 2002, shedding about 20 per cent of its value against the currencies of its major trading partners, has made U.S. exports more competitive and lifted the fortunes of its struggling rust-belt industries.
Yet for continental Europe, with its traditionally strong export sectors, the rise in the value of the euro, which has already smashed through its previous record against the dollar, is potentially devastating. Airbus is struggling and an army of much smaller
manufacturers are feeling the pinch – at the same time as banks are making it tougher to borrow.
The export-led recovery that has finally dragged the eurozone out of its post-dotcom slump has begun to feed through into stronger household spending. But if nervous consumers pull in their horns, the upturn may come to a sudden halt.
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9 Responses to "Declining U.S. Dollar Is a Drag for Europe" 
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