Money is now talking with a European accent in New York as some stores have begun accepting euros, making some currency exchange traded funds (ETFs) look pretty good.
Angela Moore for Reuters says that some shop owners have decided that "money is money" and they’ll do the exchanging themselves. Since the U.S. dollar has weakened, European tourists have been pouring into New York with money to burn.
There are towns along the Canadian border that will accept Canadian currency and some places along the Texas-Mexico border accept pesos. Until now, though, the acceptance of foreign currency in Manhattan was unheard of.
If, like shop owners in New York, you’re feeling bearish on the dollar, you can hedge it with the CurrencyShares Euro Trust (FXE), CurrencyShares Canadian Dollar Trust (FXC) and CurrencyShares British Pound Sterling Trust (FXB), among others.
The dollar vs. the euro:
Read the disclosure, as Tom Lydon is a board member of Rydex Funds.
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Mr. Lydon serves as an independent trustee of certain mutual funds and ETFs that are managed by Guggenheim Investments; however, any opinions or forecasts expressed herein are solely those of Mr. Lydon and not those of Guggenheim Funds, Guggenheim Investments, Guggenheim Specialized Products, LLC or any of their affiliates. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.