However, the weaker dollar has made U.S. goods cheaper to purchase for overseas buyers, making American manufacturers more competitive. U.S. multi-national corporations, which earn a significant portion of their profits from
overseas operations, have been the most visible benefactor. Their overseas profits are valued in the local currency. When converted to dollars, the weaker dollar allows them to retain more of their profits. The continued strength in corporate earnings, boosted by the weaker dollar, has helped drive the stock markets to record highs.