Will the falling dollar make American software vendors targets?(Mergers & Acquisitions)

Manufacturing Business Technology, March, 2005

For the past few years, the dollar has been headed in one direction: down. Since early 2002, it has fallen 24 percent against the yen, and 16 percent against a benchmark index of currencies maintained by the Federal Reserve. The impact of that fall on the prices for goods imported into the U.S. has been muted. That's because many Asian currencies--including China's--are either pegged, or closely tied, to the dollar.

But the euro isn't pegged to the dollar. And since early 2002 the dollar has depreciated by a massive 37 percent--that's more than a third--against the euro. American buyers of luxury European goods have certainly noticed the difference, and switched allegiances. Automobile manufacturer Jaguar, for example, has been forced to lay off workers....

Read the rest of this article with a Free Trial at HighBeam Research.

Premium Content Partnership | HighBeam Research provides an in-depth online archive library of reference works.