breakthrough this morning 1£ = $2+
 

15 year high

Wonderful news :)

Does that mean I should plan a trip to America now?

Now if only Easyjet start flying there ...

Steve

Well, on Friday Michael O'Leary, the CEO of Ryanair, announced that he is envisioning trans-Atlantic flights for as little as $12. However, although these will be several years from now, perhaps the exchange rate by then will mean that they will cost only £4.

>...the CEO of Ryanair, announced that he is envisioning trans-Atlantic flights for as little as $12.<

If you think cattle class is uncomfortable now,....

Also, keep in mind that with taxes and fees, the $12 fare will be $687.50.

((I))

I've just had a worzel on priceline and a week's hotel around my birthday in New York* is £250. Half a monkey!

The whole American Hair issue is a worry though. And the guns. Hair and guns, and the teeth. Hair teeth and guns, and the clown's shoes. Hair teeth guns and shoes. It's a worry.

Brings back fond memories of London, February, 1985 the exchange rate was nearly even.

We won't be going to the UK for a while!

Let's see...

Trip to London, or paying off the mortgage?
Trip to London, or groceries for the next year?
Trip to London, or a new car?
Trip to London, or paying my taxes? (don't get me started on that one!)

Trip to London!

Forget the mortgage, groceries, taxes, etc.

Life is short... As only too painfully illustrated yesterday in Virginia.

"Crazy" you aren't...thanks for the perspective.

I'm now glad we bought our tickets on a whim. If we had looked at the exchange rate before and planned everything out before, we might have decided not to go....Life's too short!

We leave in 2 weeks!! :)

Pardon my ignorance - does it mean that Europeans can travel to US for cheap and vice versa?

SeanLand, when the US$ gets weaker, we (American tourists in the UK) must pay more for each £, thus making our trip more expensive. For example, if a hotel room costs £100/night, that translates to $200. A few years ago when the exhcange was 1.75, that £100 room would have cost me $175.

Conversely, when our British friends come to the US they will get more US$ for each £. A hotel room costing $100/night will now cost them only £50. Back when the exchange was 1.75, that same room would cost £57.14.

So a weaker US$ is bad for Americans traveling in the UK because it drives up the cost of our trip. However a weak dollar is good for British tourists in the US because they are getting more US$ for their money.

So to our British friends, come on over!! :-)

"Hair teeth guns and shoes. It's a worry."

I know some Americans feel superior about their teeth, and that our guns are not up to the standards of Purdy and the other London "best" makers, but what are the hair and shoe issues?

Don't ask. He supports Spurs. Of course he has issues.

P_M. :-(

Reading this from my hotel room in Norwich. Obviously my week in the UK is going to be even more expensive than planned.

All the more reason to visit Mexico; Argentina and Chile.
M

Very good explanation P.M.!
to continue with Economics 101:
there are some benefits of the weaker dollar : American export are cheaper abroad ( more exports and jobs in export industries) ,investment in U.S is more attractive ,and of course travel to U.S. is cheaper so service industries benefit.
Now for the down side for Americans: more expensive to travel, invest abroad, and buy imported goods .

Well I have no hair, but I support the Spurs as well.....my teeth are nice though

>hotel room
Well, I've book a room in Paris in June 4 nights.

Comfort Hotel Bastille = 37€ (incl. tax) night compared this to
Motel6, TWIN FALLS Idaho = $55.99 (plus tax) night
If both places are equally interesting, both hotels of the same quality, they should cost the same. Heck, my calculation is shomewhat flawed here?? ;-)

Well I think Twin Falls is MUCH more ineresting than Paris, France, don't you?

Dukey - try the local brew. Norwich Lager is one of my favorite UK suds. But you're too late for the N.L. Festival (August).

Logos, a couple times I have considered the Comfort Hotel Bastille, but didn't end up booking it. Where did you find such a cheap rate? (The cheapest I've seen so far is 60 Euros per night including breakfast for a double room - maybe in your case you have a single without breakfast?) I'll be interested to hear how you like it.

I'll post! The rate was on hrs.de, but has increased now, but still not extremely expensive. No breakfast!

I have my AA ticket, I have my BritRail Pass, I have my hotel reservations for three weeks in Edinburgh in September, and I have two new knees. I don't care if the exchange rate gets to be 3-1, I'm still going, and I'm going to have a wonderful time!!!

For myself - I haven't done much international travelling, but I have the desire to go just about everywhere :)

We went to Germany last summer and were thinking of another trip to Europe next summer. Then a friend in Singapore invited us to come visit and tour around SE Asia a bit. Sounds like a lot of fun and our money will go farther there than in Europe and esspecially the UK, so I think that it what we are going to do.

BUT, if I had a particular desire to see England right now, I don't think I would care what the exchange rate was. I think I would just go.

As it stands though, since I haven't been many places and want to go lots of places, I think I will plan trips with exchange rate as a consideration :)

Because of the very unfavorable exchange rate to Americans, the UK has always been near the bottom of my list.

I think it just fell off!

Well, a good chunk of my lodging has already been paid for. But I guess I'll take it on the chin for food and daily expenses when I travel in June.

Can't complain, though. Last time I went to London (1985), the dollar was at or near its all time high against the pound and most European currencies.

What I end up paying for airfare and accommodation tends to be a crapshoot anyway, with only minimal apparent effect from the exchange rate, so I'll exclude that from consideration.

Given I tend to budget travel, let's say that I am going to spend 50 pounds per day (excluding airfare and accommodation), and I'm going to stay for one week in the UK. If the exchange rate is 1.80, then my 350 pounds will be $630 USD. If the exchange rate is 2.00, then my 350 pounds will be $700 USD. Although $70 USD is not a trivial sum, I doubt it's going to make or break most people's trips.

Thankfully, the flat I rent was quoted in dollars & hadn't changed from last year plus it was paid in full. And the plane ticket was paid for months ago. WHEW! :)

Well do remember one of the laws of thermodynamics we learn in Physics...for every action there is an equal and opposite reaction or in other words what goes up must comde down.

I'm not saying this perjoratively but obviously the current administration doesn't seem to mind this by some of their actions including holding interest rates down (while a simplificaton, if interest rates rise, people will be more likely to invest in American securities or whatever as they will make more money then investing it at home, on the contrary when interest rates go down, people are more likely to invest where they can get more bang for their euro (or quid).....capital flows out of the US and the dollar goes down.

Whether it is a bad or good thing is a matter of perspective....lower interest rates mean lower mortgages which of course spurs on the housing market...it also raises the prices of imported goods which means people will be more likely to buy American...while American exports become cheaper and more American goods are bought which helps American industry etc.

The only people really hurt big time when the US dollar goes down are travellers and should American economic policy revolve around the needs of travellers? And of course, is it a good thing for Brits, for example, to have a strong pound..I read on some British bulletin boards of people complaining about high interest rates in Britain.

So is it symbolic of a bad economy or a strong economy? Who knows...I'm not an expert on economics so yes it annoys me when I'm away from home but then again, I may spend I don't know 30 to 35 days away from home...I suppose that increses my cost of travelling but is it really a bad thing?

The USA is now laughably cheap for we Brits. However; hair; teeth; guns; shoes and those horrible hats.

It's difficult.

...you mean baseball caps? You're nothing until you walk around wearing a baseball cap backwards...

Incidentally on a more serious note...I see a lot of teen age Brits walking around with baseball caps backwards along with blue jeans and t shirts with all sorts of obscenities.

What a decadent culture we have in the USA.

Incidentally on a more serious note...I see a lot of teen age Brits walking around with baseball caps backwards along with blue jeans and t shirts with all sorts of obscenities.>>>>

It's true - it's spread like the Black Death. And it's about as welcome.

But we're still OK on the hair, teeth, shoes and guns issues.

Good? Bad? yes and no. With all the changes that happen in a global economy it only depends on whether you are a buyer or seller at any certain time. If I were selling American products (rare as they may be) I'd be happy.

Our constition says we have the right to bear arms. I'm looking for a nuclear weapon for protection. :)

But wait until you try to buy a beer on South Beach and the price is $7. Then we kick you out for not leaving a $2 tip. The British Pound doesn't seem so strong anymore, does it.

>Well do remember one of the laws of thermodynamics ...for every action there is an equal and opposite reaction ...

Ummmmmm, that's not Thermo, it's Dynamics - Newton's 3rd Law.

This situation of the weak dollar won't change until a lot of American trade and tax policies change. If you have been asleep the past year or two, you may have overlooked the improvement of the Canadian dollar ( or "loonie") against the U. S. dollar. Mark my word: there will come a day -- and not too distant a day -- when the Canadian dollar trades at par with the U. S. dollar as it once did before Canada's economy went off the tracks. Visit Canada now! It's a bargain!