Buying Advice US/$ at its highest level in twenty years

[jeff9366]

Perhaps we will experience some net price decreases from Japanese tractor suppliers by mid-summer 2022.

Seeking Alpha - Wall Street Breakfast - 4/29/2022​

The greenback is at its highest level in two decades, climbing another 1% on Thursday to just under 104 in the U.S. Dollar Index, marking its strongest level since 2002. The gauge measures the U.S. currency's strength against a basket of other developed world currencies, including the euro, yen, Canadian dollar and British pound. In fact, the greenback has advanced 7% since the beginning of the year, outpacing many assets from stocks and bonds to gold and bitcoin.

Japan's widening policy and trade gap has sent the yen into freefall this year.

 

[oosik]

That could be encouraging. The consumer price index( CPI ) has only risen 1.2% so far in 2022.

 

[Gale Hawkins]

Things must be looking pretty dark in some parts if the flight to the dollar is taking place.

 

[jeff9366]

Things must be looking pretty dark in some parts if the flight to the dollar is taking place.

Seeking Alpha - Wall Street Breakfast - 4/29/2022​

The euro has been on the back foot due to the war in Ukraine, China's severe COVID restrictions have led to a weaker yuan and Japan's widening policy and trade gap has sent the yen into freefall this year. "We had two decades of the benefits of low inflation, but now central banks are trying to win back their inflation-fighting credibility," noted Jordan Rochester, foreign exchange strategist at Nomura. "But the ECB is facing stagflation and will struggle to keep with the Fed, and the BOJ isn't even coming to the party. With lower exposure to China, and lower exposure to Ukraine, the U.S. stands out as resilient."

 

[newbury]

Look around - China is in trouble, like written. Everything in Europe is within reach of the Dark Lord. The Ukrainian bread basket (one of the top three exporters of grain in the world) has fallen off the shelf. Americans seem to not realize how lucky we are.
And this should probably be moved to FP.

 

[rScotty]

Yes, the US dollar seems strong internationally and that usually results in lower prices for manufactured goods like most of the compact tractors and parts.
It will be interesting to see if lower costs of imports results in lower prices to the consumers.
rScotty

 

[grsthegreat]

dont see it happening...the prices just keep going up. diesel here shot up another $0.10 per gallon yesterday, enev as oil prices drop.

 

[Jstpssng]

dont see it happening...the prices just keep going up. diesel here shot up another $0.10 per gallon yesterday, enev as oil prices drop.

They need to get the prices as high as possible, so when they drop it a few dimes we feel like we're getting a bargain.
And I agree, this discussion should be on the FP.

 

[Bill Guenthner]

That could be encouraging. The consumer price index( CPI ) has only risen 1.2% so far in 2022.

 

[Bill Guenthner]

dont see it happening...the prices just keep going up. diesel here shot up another $0.10 per gallon yesterday, enev as oil prices drop.

The crude oil that the refinery bought to make the fuel you’re pumping today was bought quite some time ago. Like anything, retail prices take a while to catch up with input costs. Unless they’re going up of course, then they mark it up over night.

 

[grsthegreat]

The crude oil that the refinery bought to make the fuel you’re pumping today was bought quite some time ago. Like anything, retail prices take a while to catch up with input costs. Unless they’re going up of course, then they mark it up over night.

not true...they raised the price on gas using the crude they purchased at lower price. they didnt wait one second.

 

[Bill Guenthner]

not true...they raised the price on gas using the crude they purchased at lower price. they didnt wait one second.

That’s literally what I just said. What part of overnight was confusing?

 

[5030]

'They' are a for profit companies last time I checked.

 

[grsthegreat]

The difference is gasoline is like utility power and water. Those are regulated as they really effect peoples lives. Imagine if cost of water and electricity could skyrocket overnight. You can elect not to purchase lumber, but without gas you cant get to work to afford your rent or mortgage. Gas companies are gouging people right now.

 

[newbury]

Imagine if cost of water and electricity could skyrocket overnight.

Didn't Texas try that?

 

[priberc]

Yes, the US dollar seems strong internationally and that usually results in lower prices for manufactured goods like most of the compact tractors and parts.
It will be interesting to see if lower costs of imports results in lower prices to the consumers.
rScotty

I am betting prices don't drop....even though they "should" they wont

 

[KennyG]

I'm in Europe right now and the Euro is $1.05, the lowest I've ever seen. It's an interesting phenomenon many are unaware of. When the US stock market goes down, the dollar gets stronger, I suppose because international investors take advantage of cheap stocks.

 

[jeff9366]

I am betting prices don't drop....even though they "should" they wont

In the world of business, Walmart excepted, prices rarely go down, but promotions may dramatically increase.

 

[jyoutz]

'They' are a for profit companies last time I checked.

Yep, and shareholders want to recoup their 2020 losses.

 

[NoTrespassing]

I've watched Philippine Peso/US Dollar exchange rates since I started "dating" my wife online in 2005. Rates have varied from a high of about 54/1 to a low of about 40/1. That's a big difference when sending $100 to relatives there. Right now it's at 52.5/1 which is pretty darned good and makes paying tuition for a little sister or buying her a laptop a lot less painful. My wife is actually considering purchasing some property near her parents home that her uncle owns. Now would probably be the time, she holds both US and Philippine citizenship. Unfortunately that's probably something better done in person.