Will a rising dollar crimp corporate profits and slam stocks?


It's often been said that a weak dollar is good for corporate profits. That means that a rising dollar -- spurred by U.S. job creation and rising interest rates -- could hurt corporate profits and slam stock prices.

How so? A weak dollar is good for corporate profits if a company makes its products in the U.S. and sells them in other countries where the dollar has been steadily weakening. That's because the weak dollar translates into a relatively cheap price for customers outside the U.S.