Many U.S. CEOs Say Weak Dollar Hurts Business

NEW YORK (Reuters)- Four out of 10 U.S. chief executives believe the weak dollar has hada negative impact on business, according to a survey released onWednesday.

The survey of 250 chief executives by accounting firm Grant ThorntonLLP showed that 39 percent of executives felt the weaker dollar hadincreased costs related to buying foreign products and services.

"More companies operate globally today than ever before, so theweaker dollar impacts companies in different ways," said Ed Nusbaum,chief executive of Grant Thornton. "But the survey really confirms thatmore U.S. companies are importing today than exporting."

The 42 percent of chief executives who felt the dollar had anegative impact on business was nearly twice the 24 percent of CEOs whofelt the weaker dollar had a positive effect, according to the survey.

Eighteen percent of the CEOs polled said the weak U.S. dollar hasnot affected their businesses and just eight percent said the weakerdollar had a very positive impact. Sixteen percent of those polled saidit had a somewhat positive impact.

The New York Board of Trade’s U.S. dollar index .DXY against abasket of six major currencies has declined around 40 percent sincepeaking in July 2001.

While a weaker dollar is sometimes seen as a boon to exports becauseit makes U.S. goods cheaper abroad, Nusbaum said the survey revealedU.S. executives do not feel that way right now.

"If you go back maybe 10 years, when more manufacturing was done inthe U.S., then a weaker dollar could have been more effective becauseit would have allowed us to export more," Nusbaum said.

"But it is more difficult now to the extent you are importing and ofcourse many companies have moved their manufacturing operationsoverseas."

But the executives did largely expect the dollar to recover. Fifteenpercent felt the U.S. dollar would strengthen in the next year and 44percent felt it would strengthen one to two years from now.

Sixty-four percent of the CEOs surveyed felt the U.S. dollar would be most strengthened by reducing the federal budget deficit.

(Editing by Andre Grenon)