Exchange rates matter in the domain market.
I just returned from a vacation in Paris, and it seemed like everything was on sale.
No, not because all of the windows had stickers promoting soldes. It’s because my currency — the U.S. dollar — hit parity with Europe’s currency — the euro — last week. It’s the first time in 20 years that the greenback has been so strong against the euro.
Eating out and buying clothes was cheaper than back home in Seattle.
And the dollar is strong against other currencies, too. The Japanese yen is down even further, and the British pound and Swiss franc are also in decline compared to the dollar.
I wrote about the impact this can have on the aftermarket a couple of months ago.
In a nutshell:
If your assets are primarily in greenbacks, then you can buy domains held by people whose assets are in other currencies for less.
On the flip side, people whose assets are in other currencies will be less able to afford your domains priced in dollars.
So this is a buying opportunity for some domainers, but it could also reduce demand for your domains.
The currency shift can also be challenging for domain registrars. They pay Verisign (and most other registries) in dollars but often receive payments in other currencies. Expect lots of talk about “constant currency basis” and “currency headwinds” in quarterly earnings calls.
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