Entering text into the input field will update the search result below

Is Yen too Low or is the Dollar too High?

Apr. 04, 2011 2:14 AM ET
Soldier profile picture
Soldier's Blog
1 Follower
Please Note: Blog posts are not selected, edited or screened by Seeking Alpha editors.
By Grant de Graf

Bloomberg Buisnessweek reports:
China itself intervenes to limit gains by the yuan, drawing criticism from trading partners including the U.S.

This is not a new assertion. However, China has always criticized the U.S. for propping up the dollar, arguing that it is the dollar that should be allowed to weaken, and that blame on Chinese officials to keep the Yen low, is inappropriate. Why would a weaker dollar be such a bad thing?

Certainly with the large trade or current account deficit that the U.S. runs, it would seem like a lower dollar would be a natural progression and the course that should follow. For a start, U.S. manufacturers will enjoy a new advantage in being able to export goods at cheaper pricers and ultimately, as growth becomes export driven, this will also reduce the trade deficit. Problem solved.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

Recommended For You

To ensure this doesn’t happen in the future, please enable Javascript and cookies in your browser.
Is this happening to you frequently? Please report it on our feedback forum.
If you have an ad-blocker enabled you may be blocked from proceeding. Please disable your ad-blocker and refresh.