The U.S. dollar has been on a steady decline over the past year, hitting a four-year low against major global currencies. What does this mean for everyday Americans and their wallets? The answer is a bit of a double-edged sword.

Imports Get More Expensive

When the dollar weakens, the cost of imported goods and services rises. This means Americans will pay more for products like electronics, clothing, and even some foods that are manufactured overseas. Reuters reports that a weaker dollar "can boost exports and economic growth," but it also makes "imports more expensive for American consumers."

Overseas Travel Gets Cheaper

On the flip side, a weaker dollar makes travel to other countries more affordable. The Wall Street Journal notes that the currency's recent decline "has added to pressure on less-affluent Americans hoping to go abroad." So while international trips may be out of reach for some, those who can afford it can now stretch their travel budget further.

The Bigger Picture

What this really means is that the U.S. is intentionally allowing the dollar to weaken in order to boost its exports and narrow the trade deficit. As CNBC reports, this is a "double-edged sword" that could have broader implications for the economy. While a weaker dollar may help American manufacturers in the short term, it also increases the cost of imports and could stoke inflation.

The bottom line is that a declining dollar is a complex issue with both pros and cons for everyday Americans. It's a tricky balance that the U.S. government will have to navigate carefully in the months and years ahead.