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Managing the strong U.S. dollar

March 19, 2015 In The News 1 min read
Joel Mitchell

The strong U.S. dollar is great for American tourists going abroad — and not so great for U.S. corporations with sales in other countries.

In late February, the euro was worth about $1.13 and the Canadian dollar was worth about 80 U.S. cents. Last May, the euro was trading at almost $1.40 U.S. and the Canadian dollar was worth about 94 cents.

As the dollar gets stronger, the customer overseas is paying with currency that is going to be worth less when converted into U.S. dollars here. An option is to raise the price in the overseas currency — but then there is the risk that some sales will be lost.

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