Nothing highlights the effect of currency moves like foreign travel. The dollar had a major upmove this past year against major currencies. A 20% discount on everything is notable when traveling.

I'm in Japan now where everything is cheap to begin with (I guess due to deflation) and subtracting another 5th is amazing. The big currency moves are important looking forward and are signaling something just what I don't know.





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1 Comment so far

  1. anand on March 11, 2015 8:52 am

    Against GBP the dollar has just gyrated for some time though .. so everything in London would still be a total rip off for you (I live here unfortunately).

    The rest of the world (UK excluded) is going to start find buying stuff from the US prohibitive, which could act as a drag on the US economy just as the FED is looking to raise rates which will push the dollar even higher.

    I’m going to look at relationships between the dollar and various agricultural commodities this afternoon (starting with cotton) results of which I can post up here if anyone is interested).


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