Benefits of a weaker dollar
There is some upside to dollar weakness, since many big U.S. companies get a bump in sales overseas, where their products become more competitive. For example, Procter & Gamble reported sales grew 3 percent in the third quarter due strictly to changes in currency exchange rates, bringing in an extra $365 million in company coffers.
And manufacturers such as U.S. automakers typically cheer a weaker dollar, even though the weakness tends to benefit producers of commodities such as steel more than makers of finished products such as autos.
U.S. tourism is another industry that can see a lift from a weaker dollar. Foreigners are more likely to visit because their home currencies can buy more here, and U.S. vacationers who might otherwise travel abroad are more likely to stay home if the weak dollar makes an overseas trip too costly.