DENVER — New data shows the United States dollar just had its worst start to a year since the 1970s. Tariffs and other recent trade policies are what financial analysts attribute for the decline. Through the end of June, the dollar is down 10.8%, according to Bloomberg.
At the start of the year, $1.03 was roughly equal to one euro. Now, $1.17 is roughly equal to one euro. Denver7 asked financial adviser Bruce Allen what that might mean if you're planning an international trip soon.
"From January first of this year, if you were buying a €100 dinner, it cost you $103.54," Allen explained. "Today it costs you over $117. Same €100 dinner costs you almost over 13% more. So it costs American travelers more to travel to Europe"
Even if you're not traveling, there are still impacts here in the U.S. importers may have to pay more to bring goods into the country, meaning you could end up paying more for things not made in the U.S.
But Allen said bigger American companies that do business overseas might actually benefit from this.
"When the dollar declines, the U.S. goods become less expensive for foreign buyers, and that actually may help the earnings of large companies in the United States on the stock market," Allen said.
Despite that, Allen said it's hard to know what will happen in the weeks and months to come, especially as we approach the end of the 90-day pause on sweeping tariffs on Wednesday, July 9.
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