Dollar buying ever less of world's goods

The dollar has fallen 5 percent against the euro and the pound so far this year, the equivalent of a 20 percent annual decline. By Ron Scherer | Staff writer of The Christian Science Monitor

Eiffel Tower: American tourists are thinking twice about trips to Europe as the euro gains against the dollar.  Alfredo Sosa – Staff

New York - It's like a summer movie: the incredible shrinking dollar.
Since the beginning of the year, the buck has shrunk 5 percent – the equivalent of a 20 percent annual decline – compared with the pound and the euro.

But the shriveling value of the dollar may eventually help solve one of the most intractable US economic problems: the enormous trade deficit, which hit $63.9 billion in March, the highest level since September of last year.

Already, giant European companies are taking advantage of their strong currency by announcing huge investments in the United States. And US exporters such as Boeing and Caterpillar are getting an order boost as the lower-valued dollar allows them to undercut their competition. continue...