Living well with a strong dollar
ZURICH | By UBS analysts | Will a strong dollar much weaken overall U.S. growth and inflation? The answer importantly depends on how much export and import prices respond to changes in the dollar’s foreign exchange value. Exporters may cut dollar prices and profit margins in order to blunt a stronger dollar’s impact on their market shares and volumes. In fact, over the three months through October, dollar prices of nonagricultural exports fell steadily (by a cumulative 1.3%).