What a Weaker Dollar Means to You

Travel abroad is more expensive, but your overseas investments may benefit.

(Image credit: Lucy Hewett)

Diane Swonk, founder of DS Economics, is past president of the National Association for Business Economics and a member of the Council on Foreign Relations. Her firm works with public- and private-sector organizations to identify and hedge against economic risk.

The dollar has fallen about 9% against major foreign currencies this year. Why is the greenback losing value? It’s a combination of factors. Hopes for tax reform and pro-growth economic policies have dissipated since the election, and the Federal Reserve doesn’t see as much urgency to raise interest rates rapidly. Plus, economies in Europe and Japan are showing more strength, pushing up their currencies relative to the buck.

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Daren Fonda
Senior Associate Editor, Kiplinger's Personal Finance
Daren joined Kiplinger in July 2015 after spending more than 20 years in New York City as a business and financial writer. He spent seven years at Time magazine and joined SmartMoney in 2007, where he wrote about investing and contributed car reviews to the magazine. Daren also worked as a writer in the fund industry for Janus Capital and Fidelity Investments and has been licensed as a Series 7 securities representative.