Business Report: Which is better - A strong dollar or a weak one - Hawaii News Now - KGMB and KHNL

Business Report: Which is better - A strong dollar or a weak one?

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HONOLULU (HawaiiNewsNow) -

Suppose you're the president, you've been in business all your life, you went to the Wharton School of Business, and it's three in the morning and you can't for the life of you remember which it is, a stronger dollar is better or a weak one, so you do what anyone would do, you call your national security advisor.

And the national security advisor, who was just having a nightmare about Iran and North Korea plotting to fire missiles at the same time, says, "Uh, well, Mister President, that's not really my area of expertise, maybe you should, like, call an economist." The Huffington Post says this really happened. And I'm sure your reaction on hearing this story was, "Well, which is it?"

In Hawaii we like a strong yen, and a strong Canadian dollar, and a strong Australian dollar, and a strong Korean won, so our visitors have plenty of money after converting their money into weak dollars. And a weak dollar benefit exporters, who can make more money in those other places after converting it back into dollars. But mostly, a strong dollar is better.

There are several reasons but the most important is that oil is traded in U.S. dollars. I mean all oil, all around the world. The more a dollar is worth, the crude can sell for and still make sheiks a pretty penny. Turn it around and remember it like this: a weak dollar makes fuel prices go up.

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