The U.S. dollar has been on an upward tear lately after years of decline. As 2014 comes to a close, I decided to take a look at markets where the dollar’s current strength has had the most favorable impact on property prices.
As it turned out, a few of my favorite places are having what amounts to a clearance sale thanks to today’s favorable exchange rates. More on that in a minute.
To lay the groundwork, take a look at the dollar’s rally this year, as measured by the U.S. dollar index. The index measures the dollar’s performance against a basket of weighted currencies, including the euro, yen, pound sterling, Canadian dollar, Swedish krona, and Swiss franc (in descending order of their weight in the index). An index value of 100 is what the dollar was worth when the index began in 1973.
The dollar index shows the dollar’s overall trend better than a single country’s exchange rate will. Continue reading