Weak dollar could be a hit at NY Fashion Week

By Michelle Nichols

NEW YORK (Reuters) - A weak U.S. dollar may be the hit accessory at fashion shows in New York this week, luring British and other European buyers and offering newer designers a chance to impress U.S. retailers hoping to buy locally.

U.S. consumers are tightening their purse strings in the face of lost jobs, home foreclosures and surging food and gas prices but some designers and analysts say that may not necessarily spell doom and gloom for the fashion industry.

"We have gotten a lot of confirmations from the European buyers and editors, so I think they are all in town ready to use their euros," Raul Melgoza, creative director at Luca Luca, a regular at New York's semi-annual Fashion Week, told Reuters. Melgoza showed his first collection for Luca Luca on Monday.

Although the U.S. dollar is firming, hitting a one-year high against a basket of major currencies on Monday, the euro is still worth nearly $1.41 and the British pound is about

$1.75.

Just as foreign tourists have been shopping in New York with their strengthened euros, yen, francs and pounds, designers hope buyers from European and British department stores will follow suit.

Maria Luisa, a trendy Paris boutique that sends buyers to Paris and London fashion shows, ended a six-year hiatus by returning to New York to see several young designers.

"With the dollar being so low, it becomes interesting to go check it out," said Robin Schulie, who looks after purchases for Maria Luisa, which also has a Hong Kong boutique and is opening one in Qatar this year.

'TIME TO DO SOMETHING GREAT'

Despite the struggling U.S. economy, more designers than ever are showing this week in New York.

"This is not the time to pull back and have people forget about you," said Fern Mallis, senior vice president of IMG Fashion, which runs New York's Fashion Week.

"It's the time to do something great, shine, have people talk about you and try and capture what fewer dollars the retailers might be spending."

Designer Michael Angel, who debuted on Friday, said as a newcomer he aimed to make an impression.

"I'm sure buyers are being very selective on what they buy, but at the same time I think it's either going to be interesting to them or it's not," said Angel.

David Wolfe, creative director of The Doneger Group, a trends forecaster, said new designers have a chance to impress U.S. retailers who might be considering spending more locally than internationally due to the weak dollar.