From Cynthia Scott of OMC Financial Services:

Why the value of the US dollar is important to investors:

**An increase or decrease in the US dollar affects:

>>US consumers – They will pay more or less for products that are imported from another country – consequently, they may spend more or less

>>Foreign investors – Their investments may be worth more or less when they sell them based upon the value of the dollar.  They may be hesitant to invest in the US.  Foreign investment is a source of money to finance the US economy

>>US companies that sell their goods to foreign consumers – Profits from these sales are reported in US dollars, not the foreign currency

>>Confidence in the US financial system by all investors