Dollar Soars Against Foreign Currency
Via the Los Angeles Times:
Americans have long complained that the dollar doesn't buy much anymore. Suddenly, the dollar's problem may be that it buys too much — a change that has huge implications across the global economy for consumers, businesses, investors and governments. The U.S. currency's value has surged over the last nine months, reaching levels against some world currencies last seen more than a decade ago. In Europe, it now costs just $1.09 to buy one euro, down from $1.37 a year ago and almost $1.50 four years ago. To put it another way, an American tourist strolling the streets of Paris this April can buy 25% more croissants, cafe au laits or mini Eiffel towers than a year ago with the same dollars. The greenback's advance has been even more dramatic against some rivals. With its latest rally, one buck buys 30% more Swedish kronor than a year ago, 40% more Brazilian reais and 61% more Russian rubles. Western Europe gets a lot of the publicity because the euro is the weakest it has been since 2003. But the dollar is up 22% from a year ago in Poland, 20% in Morocco, 14% in Mexico and 12% in South Africa.The downside, of course, is that US exports are more expensive and the cost of visiting the United States is much more than it was just last year.