A report out today from Dolmen Stockbrokers (www.dolmenstockbrokers.ie) states that the ever increasing exchange rate between the dollar and euro could have devastating consequences in Ireland in 2007. The big guns are already having some problems but there are others at risk like Dell, Pfizers & Microsoft. They are already feeling the pinch.
When companies are already trying desperately to cut costs the negative effect of the poor dollar/euro rate is really hitting home.
If these go unchecked and the dollar falls further then “the threat of job losses would increase”, said Stuart Draper, Dolmen head of research.
So yipee for more spending power & reduced import costs but boo for the possibility of US firms having to consider to move because of the fluctuations.
The euro climbed to an all-time high of $1.3832 in Tokyo, up from $1.3781 in New York late on Tuesday. So we are fast approaching that famous $1.40.