October 1, 2007 - Dollar Lists Exporters

If the dollar falls too far and too fast, it could spur a run-up in interest rates and shake the stock market - which would be bad for the economy. A rapidly falling dollar would raise the price of imports, stocking inflation and in an extreme case could prompt foreign investors to dump U.S. bonds, pushing their yields higher. But as long as the dollar declines at a gradual pace, most economist see it as a modest positive. Multi nationals have built factories all over the world to insulate themselves from changes in currency. The dollar, however, has drifted so low, that some companies are considering moving their production back into the US.