Spring 1997 - Volume 2, No. 4
Tennessee Trade Weighted Dollar Index
A surging dollar has lifted the Tennessee trade-weighted dollar index to 116.92, a five-year peak. The dollar strengthened virtually everywhere. Of the twenty-two currencies comprising the index, only the Canadian dollar and the Chinese yuan gained against the dollar since the end of 1996. The rise in the Canadian dollar was minute. There was also little movement in the Mexican peso, which fell slightly. The action, rather, was in the european currencies, and it was significant. Led by 12.3 percent drop of the Deutschmark, european currencies typically fell by some 10 percent over the quarter. The Japanese yen also dropped over 8 percent. The other asian countries depreciated too, although at a much smaller rate. The 2.61 percent rise in the index is the largest since the 4th quarter of 1995. The 1995 rise heralded the much slower Tennessee export growth rates of 1996, and, if past trends hold, this quarter's increase should also begin biting into state exports during the middle of this year.
Return To The Table Of Contents