Do you lose money because of exchange rates?

Question

Do you lose money because of exchange rates?

Or will things cost the same just in different amounts?

for example:

If you buy a piece of bread in U.S for 2 dollars, would it cost 1 Euro in europe or 2 euros. (obviously not exact numbers but you know what I mean)

Thanks, hope this makes sense!

(btw I'm 15 which is why I don't really know about this stuff)

Answer 1

yes in fact you are losing money.

Answer 2

For services and goods that are produced in the US the price is not effected by exchange rates but for imported items the price will increase so  to the extent you buy them you will "lose" money. The biggest effect for the average American is that about 20% of the price of gas reflect the fall in the value of the dollar. However if you are in Europe, buying things with dollars eveything would cost you 20% more than in did a few years ago.

Answer 3

No, you are not losing money just because of the exchange rate.  But you can lose (or make) when exchange rates change -- and they change almost every day.  Also, when you exchange money, the money changer will charge you a fee.

And also, maybe bread just costs more in the other country.  Or it might be cheaper.