It is great news to hear the United States Dollar has risen 14 percent in the past year. Foreigner investors began to fear if its continuous rise will make business in America harder to maintain, as well as the price of land and equipment prices to rise. Now that the United States Dollar is at a standstill it gives foreigners a chance to revise a plan to make their currency rise, so they can afford investments with American companies.
Even though the dollar is at a halt it is not far behind the euro since it recently fell below $1.05 on March 13. The halt is not a big concern as of today because the U.S dollar has taken many breaks before, after it has reached certain peaks up the ladder. In the past the dollar was growing very slowly and inflation dropped. The Federal Reserve tried to start leading financial markets to watch the euro fall, so the United States Dollar could rise again.
Allowing the dollar to take its rest gives politicians an opportunity to work out debts and solutions of previous accounts to keep from allowing a downfall in the value of the dollar to occur again. Since the United States is known for offering many assets to its citizens and foreigners, having an inflated dollar reflects the U.S as being a strong economy. The roller coaster ride ahead will be the challenge of getting foreigners to see the value of the U.S dollar rising is for the long haul despite its short pauses and halts.
The United States Dollar temporary standstill should ease the minds of foreigners. The standstill will be able to get foreign investors a chance to understand spending money on businesses in America would be easier for them, since Americans will still want to purchase their products. With the value of the dollar rising more jobs were able to surface and put more people back to work, which means more people would have money to spend.
Since many people have been out of work for a reasonably amount of time they will not be able to afford equipments and lands that is bred by Americans because it cost more. However, Americans would be willing to pay for a cheaper product that is needed from foreign investors. With that being said the Federal Reserve must stay calm and allow the United States dollar to rise again on its own.
If the Federal Reserve decides to print more money out of panic it could send the value of the American dollar down the drain. The Federal Reserve must keep in mind that foreign investors are really paying attention to the U.S. economy, and one slip will give them the opportunity to try to buy American businesses out, in order to keep Americans invested in their products. The American economy should be watched by the Federal Reserve more than the foreigners to continue to keep the U.S dollar at its rising peaks.
United States dollar at a standstill not only benefits the foreigners, it helps America out as well because more financial plans can go into action with less debt. This can also help Commerce reevaluate where money should and should not go as well as finding a solution to prevent the dollar from further halts.
Opinion By Krystle Mitchell
Photo By Surat Lozowick – Flickr License