ROCHESTER, N.Y. (WROC) — For the first time in roughly 20 years, the U.S. dollar and the Euro are at a parity.
During the 2008 montage crisis, it took about $1.60 to buy one Euro. Recently, the dollar reached par with the Euro, meaning it takes $1.00 to buy one Euro.
News 8’s Ally Peters spoke with CPA Matt Bryant, with the New York State Society of CPAs, about what this means for Americans.
How could this impact Americans?
“As the dollar gets as strong as the Euro, it means it’s better for America because we were able to get goods from Europe cheaper and if we traveled Europe, our dollar can go further as we travel,” Bryant said.
If you are an American planning a trip to Europe soon, what should you know?
“You should know what the exchange rate is so when you travel internationally you make sure you get close to what you could get here, but using a credit card when you travel internationally could get good rates as well, so that might be an option to fund your trip,” he said.
Is there a downside to a stronger US dollar?
“Yes there is. Anything that we export to other countries will cost more, which could drive down demand,” Bryant said. “Also, it could cause more people internationally to not travel to the United States, which could hurt our travel industry.”
Is it possible the dollar gets even stronger against the Euro where it would take even more than one Euro to buy a US dollar?
“Yes, it is possible. The conflict between Russia and Ukraine right now is having a big impact and the energy coming from Russia to Europe, which could be up or down, could have a dramatic impact on their currency.”
Is there a similar impact on the dollar against other currencies?
Bryant said yes because the same concept applies when considering the dollar against other currencies.
Is there anything that you can do to protect against currency fluctuations?
“Yes, there are some investments that really are protected from currency, real estate being one of them, commodities like gold, things that are limited in quantity typically retain value as currency fluctuations occur,” Bryant said.
If you have further questions about foreign currencies and how it could impact your wallet, you can reach out to a trusted certified public accountant so they can help you with a financial plan.
You can contact the New York State Society of CPAs by clicking here.