In Reply to: Re: Monetary exchange posted by Surfin' Yank on November 28, 2004 at 20:00:01:

A weak dollar means that US exports become cheaper overseas (good for jobs in the US -theoretically) but imports become more expensive (bad for US consumers and countries selling to the US) it can also mean that in the long term even US produced goods rise in price if their manufacture involves imported raw materials/oil. Ironically it can make the debt worse if
1) The government borrows more to pay for imports
2) Simply by virtue of the fact that a large chunk of the debt is in currencies other than the dollar

A weak dollar means more tourists coming to the US and fewer US tourists going overseas however it also means more inflation and possibly rising interest rates which could slow down economic growth

Why does the Dollar fall more relative to the Euro than the Mexican Peso ? Possibly due to the fact that the Mexican economy is more tied in to the US economy than the Euro. The USA is Mexicos biggest export market. While Europeans are hardly immune from US economic shocks Mexico would be hit much harder