Editor’s note: This is a transcript of the audio file.
How does the value of a strong dollar affect your bottom line? I’m Kristin Arnold with your Bankrate.com personal finance minute.
A strong dollar gives consumers more purchasing power. Your money goes further – not only domestically, but also globally. Exchange rates are better…making foreign travel more affordable. A strong dollar is especially important for consumers as America tends to import far more goods and services than it exports. While the cheaper foreign goods are good for consumers, that strong dollar hurts U.S. exports. Greg McBride, senior financial analyst with Bankrate.com explains.
“The strong dollar has a pocketbook affect on american households by driving down the cost of food and gasoline and also that of foreign travel. “
The dollar’s value also plays a role in our investments.
“A strong dollar can be a drag on the returns that your earn on foreign stocks and bonds when they’re converted back into U.S. dollars.”
To see how the dollar currently stacks up against other currencies, visit our currency conversion calculator under the calculator tab at Bankrate.com. For Bankrate.com, I’m Kristin Arnold.