BUY EUROS NOW OR WAIT?
 

I was wondering what you folks think about buying Euros before we go to Europe in Sept?
I can buy upto 4000 Euros for a flat fee of $20.00 4000 Euros = $4,775.00 + $20.00 fee
Should I buy now at this rate or do you think it may go down?

If they're going to attack Iran (sigh), which is quite sure, the $ will go up...

I think it may go down. But you might not want to buy now because I think it might go up.

How long are you going to be there that you would need that much cash? Conversion rates and fees aside, I would hate to travel with that much cash on me. Credit cards and ATMs make more sense to me.

this is like saying that you are thinking of buying some shares in company X...will it go up or down? nobody knows and if someone did know they would be getting rich trading currency rather than giving financial tips at fodors.

i think the only advice is that buying now would "lock-in" a part of your trip's expense. this is obviously good if the USD goes down but bad if it goes up. if you want to lock in now rather than to risk further movement, then go for it. for myself, i don't try to time currency for the purpose of holiday spending. it's a game not worth playing.

Why are you being charged $20 to buy Euros? I called my bank and they told me there is no service or transaction fee to purchase Euros. Right now the wholesale rate is $1.20 to 1EU. When exchanging the average person (you and I) will get a rate of apx. $1.24

Chart the Euro value against the dollar for the last seven months. The shape of the curve will give you a perspective of its value in September. The possibility of significant changes in its value (Euro) are low. Your peace of mind may be worth the risk of buying now. Inflation is driving up the costs of air fares, hotels and restaurant meals. They will be of more concern than the exchange rate.

The exchange rate is driven by people speculating on differences in interest rates plus trade surplusses/deficits. The biggest impact right now may be no longer increasing US interest rates, which will inevitably drive the $ down, unless other stupid things, like war...

Agree with the question on purpose - is there some specific reason that you need such a massive amount of money in cash? (Paying for an apartment in case for example.)

Otherwise you're much better off (less expensive, more convenient and much safer) just using credit cards and pulling walking around cash from ATMs.

Hi VW,

You are getting a very good rate.

However, unless you are in the market 24/7, trying to play the arbitrage game rarely works.

Some years ago, I carefully plotted currency trains for the previous five years and decided that the odds were greatly in favor of my buying European currencies in Feb for an August-Sept visit.

The dollar, of course, went up while I was there.

((I))

The whole idea is crazy. Sure, rates might get worse - or they could just as easily get better.

But disregarding the exchange rates - it is nuts to take tons of cash on a trip. Especially w/ ATM machines on every street corner. I can just see that pickpocket's eyes light up when he gets you wallet . . . . .

I assume you are smart enough to KNOW how to safeguard that much, or any amount, of money from a pickpocket. But why you would add that additional stress burden to your trip I do not understand.

As many oters have said, using an ATM is much safer, more convenient, and it gets you the best exchange rate at the time. You are not going to "save" a whole lot of money by getting that currency now and you could axctually end up losing money. I'd concern myself with other things.

i'm in the camp trying to figure out what you need 4000 euro for???

Hi

It might go up...it might go down....you never know :-) But I never travel with that kind of cash anyway. I just bring along my credit and debit cards and I use that to get cash at my destination.

Regards
Gard
http://gardkarlsen.com - trip reports and pictures

After doing more research on the ATM's in Europe I think we will just take out Euros as we need them! My bank doesn't charge a fee if we use certain banks and at those banks the fee is only $2.00 per transaction for Euros.
I can take out upto 400 Euros per day
which will be plenty and I don't have to wear a money belt or worry about leaving our money in the hotel safe. I will still buy 300 Euros to get us started.

Hi V,

>I will still buy 300 Euros to get us started.<

You won't need more than $100 worth of euros to get started.

((I))

Thanx again Ira. Hey, what about tipping in Europe? I have heard most thing you do in Europe include tips is that true? at restaurants I am a 15-20% tipper! cabs a couple of bucks, same at hotels is that good enough?

If you plan to tip that much here in Europe you´ll be spoiling them poor workers. Trust me on this one. In most countries in Europe, you´re not supposed to tip anything. Maybe some very small change that´s left in your pocket of from the money you used to pay your bill. If service is bad, never tip anything. It´s only for excellent service.

Hey helsinkiflyer were you just kidding
about never tipping in Europe?
I'll say we are in a restaurant in Paris
the meal was great and the wait staff was good but not great, our bill comes to 55.23 Euro, what would the right tip be if any?

vacationwannabe: The €55,23 will include service so you could just lay out €56 and call it a done deal.

Extra tipping other than any left over small change is not expected unless you get some really exceptional service. Even leaving the extra change isn't mandatory . . . .