The dollar is back. Well, sort of. Relatively speaking, the dollar is still down over a ten-year currency horizon against the other world currencies, but in recent weeks, it's risen to an 11 month high against the Euro. You might say this is nothing remarkable, but given the recent poor performance of the US economy, it's not bad. Most importantly, from a global sourcing perspective, this recent high amidst a mediocre US economic picture provides mounting evidence that US companies should not pull back their global sourcing efforts, moving to a local sourcing approach (at least not for all of their spend). From a European import perspective however, it all also means the US is becoming less competitive. For everyone, its proof that the ability to react quickly to changes in the economic environment -- or to financially hedge currency exposure -- is becoming a critical skill set for procurement organizations worldwide.
- Jason Busch