U.S. dollar gains ground, international business untouched
NEW BLOOMFIELD- The United States dollar is once again the preferred currency for global investors, after struggling for nearly a half decade. Right now investors are choosing the dollar over other international currencies, although it isn't the most valuable.
Some economists say a strong dollar is not always a great thing. A strong U.S. dollar can sometimes stall international exports, hurting economic growth.
However, Lynn Gastineau of Gastineau Log Homes in New Bloomfield isn't worried about the dollar's recent surge.
"I'm not concerned at this point in time," Gastineau said. "But I'm obviously going to keep an eye on it to see just how far it goes."
As of Friday, one Euro is worth $1.27 in American currency, the closest the values have been in two years. The dollar's other major gain was on the Japanese Yen, which is worth just $.92.
Despite the recent gradual climb in value, an economist at MU said he wouldn't be concerned with these figures. In fact he doesn't think they are a big deal at all.
"We're more impacted by the economies in those countries," Gastineau said. "It's more of a matter of the people in those countries being able to afford the homes at all."
The same MU economist says he is more concerned with the stock market dip at close of day on Thursday. The Standard & Poor 500 dropped 1.6 percent, the sharpest decline since July 31, but it regained some ground on Friday by climbing up .82 percent.
As for Gastineau Log Homes and the U.S. dollar, only 15 percent of business is exported internationally. However, owners claim that number could rise to more than 30 percent in the next five years.