Summary Box: Relationship between dollar and stock movements falling apart
By APSunday, March 7, 2010
Summary Box: Dollar, stock relationship ending
THE BREAKUP: During last year’s big market rally, the dollar consistently fell on days when stocks rose, and vice versa. That hasn’t been the case in the past three months.
MOVING ON: Stocks and the dollar have both risen recently, for separate reasons. Stocks are climbing because investors are seeing signs of economic recovery in the U.S. Meanwhile the dollar is up largely because investors are worried about Europe’s debt problems.
MEMORIES: Last summer a weak dollar helped boost foreign sales of U.S. goods while the U.S. was mired in recession. With the domestic economy now doing better, companies can make profits in other ways besides exports.
YOUR VIEW POINT