While the value of the dollar reached an all time low and the stock market began the day down 200 points Central New Yorkers found it tough to pay for their necessities. A gallon of milk averaged around $2.33 and gas prices rose as high as $3.49 causing residents to find their wallets a little lighter.
Some experts, however, believe it is still too early to panic. According to Don Dutkowsky, Professor of Economics at the Maxwell School, the dip in the market is part of a pattern that should be expected. Doutkowsky says he would not be surprised if the market still came out ahead at the end of the year. Right now, it seems that other countries are wasting no time in taking advantage of the shrinking US dollar as many tourists from Europe and Canada are spending their money across the nation.
In the mean time Central New Yorkers are being advised to avoid overextending themselves and, for those that do play the market, make sure they have a diverse portfolio.
Today's low stock market opening can be attributed to JPMorgan's buyout of investment bank Bear Stearn which added to concerns about thestate of credit in the U.S. The dollar continued its decline due to low interest rates that make the dollar less appealing as an investment for the future.
Click here for more information about what other economic influences might have an effect on the dollar in the near future.