Falling dollar's wide impact.
You probably have read in papers or heard on the television news about the falling U.S. dollar. So what? Why should you care? According to the Institute of Certified Financial Planners, a falling dollar can affect you several ways:
* Overseas travel is more expensive. A devalued dollar means you pay more for hotels, food, transportation, and entertainment.
* Imports are more expensive. Even if you buy only a few foreign goods, a devalued dollar still hurts because American companies that compete directly against foreign firms can raise their prices to match the exchange-price rise in the foreign goods. This double whammy pushes up the cost of living. Interest rates and the Federal deficit rise. Here, the effect is less visible, but no less important. Uncle Sam borrows heavily each year from foreigners to help pay for the Federal deficit. As the value of the dollar declines, foreigners are less apt to buy U.S. bonds. To lure them back, the government...
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