Effects of weak currency.

The dollar has been on a downward spiral for some time now against currencies like euro.It touched an all time high of $1.6 for one Euro recently. So what are some of the effects of this dollar movement and in general what is the effect of a weak currency.

Effect on Imports: Imports become more costly and so the consumer has to pay more for commodities like oil. But goods imported from China don't have much effect because the yuan is pegged to the dollar.

Effect on Exports: Exports become cheaper and so the American companies can sell more goods outside. This helps decrease the trade deficit.

Effect on company valuation: American companies become cheaper for foreign companies and this increases the chance of takeover. InBev had the timing right for the acquisition of AB as a weak dollar made AB more attractive for InBev.

Effect on foreign investments: A weakening dollar relative to where your investment increases the returns you get from foreign investments. Vice versa a strong dollar decreases the rate of return. So should you invest now? Dollar is already at an all time low against euro and so may see an upside.Therefore investing in European investments might not fetch good returns.

What are the other effects of weakening dollar?