Continue reading...The currency price of one country becomes stronger or weaker against another country’s currency on a daily basis, but what exactly does that mean for those who don’t trade in the forex market? Currency exchange rates affect travel, exports, imports and the economy. In this article, we’ll discuss the nature of currency exchange and its broader impact on people and the economy.
For the sake of this article, we will be using the relationship between the Euro and the U.S. dollar as our primary example. More specifically, we will be discussing what happens to the economies of the U.S. and Europe if the Euro trades markedly higher against the U.S. dollar. Although the Euro has recently lost ground against the U.S. dollar (1 USD = 0.89 EUR), we will discuss the implications of what is probably of $1 will purchase 0.7 Euros.
Currency Price Impact on Travellers
If $1 buys 0.7 Euros, U.S. citizens may be more reluctant to travel across the pond because everything from food to...
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