Analysis of various currencies

Euro before Brexit has maintained a higher value than the dollar since its creation. However, post-Brexit it depreciated slightly from 0.9109 and now stands at 0.88260 compared to the U.S. Dollar value of 1, meaning it appreciate in value within the time span of one month. The Australian Dollar has maintained a lower value than the U.S. Dollar. However, in the month of August it hit a dip of 1.29, appreciating in value. The same thing happened to the Canadian Dollar, which has always had lower value than the U.S. dollar but saw an increase in value going down to 1.28637 from 1.3212. The Japanese Yen took the same route appreciating in value from 106.55 to 100.18. The same as well for the Chine Yuan which started in July with 6.68 and now stands at 6.64879.

In regards to 4 years ago, the euro maintained a similar value at 0.82. However, as time has shown, it has depreciated in value increasing the numbers from .81 to .88. The Australian Dollar depreciated in value greatly since 2012. Their rate was 0.96 (OANDA, 2016). This meant it was more expensive to buy things in Australia with the U.S. dollar value than it was 4 years ago.

Four years ago the Canadian Dollar also experienced an appreciated value at 1.01. The same can be said of the Japanese Yen. In 2012, the rate for the yen was 78.50, much lower than its current rate of 100 (Usforex, 2016). The Chinese Yuan maintained fairly the same value then as it does now at 6.37.

Considering all the findings, the dollar depreciated among all the currencies, lowering in value throughout the 30 days, even with the currencies known to maintain a lower value than the U.S. dollar. Although the Japanese Yen has the lowest value among the currencies, the Chinese Yuan seems to be the easiest currency to contend with whilst abroad. China appears to be the least expensive place for an American tourist because of the higher value of the U.S. Dollar and the lack of effort to match U.S. dollar prices. The most expensive would have to be countries that have the Euro. They implement higher prices and the Euro is worth more than the U.S. dollar.

The most comparable would have to be the Japanese yen because they maintain roughly the same prices as U.S. dollar prices. For example, $1 or 100 yen is equal to the value of $1 so a pack of gum worth $1 in the states would be worth slightly over 100 yen in Japan.

India has always been a favorite for American tourists. This is because the prices are not reflective of the value of the U.S. dollar. The Indian Rupee stands at 67.0250. Food can cost as low as 20 rupees and only cost the American tourist 20 cents in relation to U.S. dollar value. The same can be said of the Mexican Peso which stands at 18.2015. Many prices in Mexico do not reflect average prices in the United States (CNBC, 2015). Something that would cost $5 in the U.S., would cost only $1 in Mexico.

An interesting thing to note is the currency in South Africa. South Africa has experienced some crises that has led to the South African Rand going from 8.01 four years ago to its current value of 13.50. This means it is almost half as expensive to travel and buy there as it was four years ago. The U.S. dollar is strongest in countries like these that have seen a recent sharp decline in value in their currency.

References

CNBC,. (2015). 8 places to visit while the dollar is stronger. CNBC. Retrieved 21 August 2016, from http://www.cnbc.com/2015/07/10/8-places-to-visit-while-the-dollar-is-stronger.html?slide=6

OANDA,. (2016). Currency Converter - Foreign Exchange Rates - OANDA. OANDA. Retrieved 21 August 2016, from https://www.oanda.com/currency/converter/

Usforex,. (2016). Historical Exchange Rate Tool - Historical Interbank Rates - U.S. Forex Foreign Exchange. Usforex.com. Retrieved 21 August 2016, from http://www.usforex.com/forex-tools/historical-rate-tools/historical-exchange-rates