Can dry eye cause affect your vision?

Yes. Dry eyes can cause your vision to be blurry and not correct with glasses or contacts. Using re-wetting drops can be helpful as well as having plugs inserted, but I would recommend seeing your opthomologist for a check-up as there may also be another cause for your vision changes.
Yes. If the dryness is sufficient to affect the surface of the eye, then it can cause blur of the vision. Chronic dryness can lead to permanent changes. See your ophthalmologist to have this evaluated and treated.