Dollar Declines Farther
 

The US dollar reached an all time low against the euro. Earlier today, €1 = $1.31.

Russia announced it was increasing its reserves in euros, which meant it dumped dollars. At one time, the US dollar was a surrogate currency in Russia. Conditions are not that way now.

I know some of you think this is a lot of pooop. But there is one response:
Foreigners are not funding our mounting debt, interest rates will rise, and inflation will return.

Your cost to travel to Europe will go higher and higher. Now if you have enough money that a 40 to 50% increase in travel costs means nothing to you, then so be it. But many of us are being priced out of the market.

That, however, is nothing compared to the economic forecasts of inflation and rising interest rates!

While I agree that we should be concerned about the triple deficit and inflation because of rising commodity prices, and that we do have several economic minefields that need to be dealt with, I care little that this is hurting the ability for US tourists to travel overseas. Right now, the best thing for our manufacturing sector is a low dollar.

I don't think Greenspan and the FRB Board of Governors should be concerned about the impact on the ability for Americans to travel overseas.

It is unfortunate that travel costs are rising and apparedntly are destined to go even higher. Of course, the travel costs for Europeans using the Euro are obviously declining.

I prefer to reserve judgement in terms of the long-term effects until after hearing from people with objective data.

I don't feel sorry that people can't spend as lavishly on their European vacations. I'm not crying. Don't care.

It's not true, anyway, and the comparison (of a 50 pct increase) is apparently against a historical low point which was abnormal in itself. travel costs are not going up 50 pct -- airfare hasn't changed according to that, for one thing. Also, one could actually spend less on a hotel, etc., if they truly felt that a couple hundred dollars was a major difference in their annual budget and it was pricing them out of a European vacation.

Look, I am less than thrilled with the US economy now in lots of way, but my major concerns about that and other current issues is not because of people's European vacation budgets. Lots of people on here (Fodors) spend quite lavishly on their vacations, by my terms, so they can obviously afford it even if they had to actually stay in some area other than St Germain in Paris, for example, or not go to those restaurants where they are dropping 100 euro a head.

i've read that, unsupported, the dollar ends up somewhere around $1.50 = euro 1.00. for those planning a trip, might be an argument to buy euros now....

Bob, you posted a similar thread a week or two ago, and it turned into a political hate fest. Am I wrong in thinking you are attempting to do the same, or do you really and truly feel everyone's pain? ((a)) ((b))

Professor Brown, We all know this. And this administration has warned us that it's going to go down farther. So why don't you hold off on these posts here until it turns around and then you can tell us about that?

Otherwise, take it to a political board or write to your representatives.

Bobby, give it a rest. Your agenda is bogus - how long will you play the frustrated, angry "sore loser"?

Using the logic you advanced on the book thread, you have no right to critize government actions since you have never been in charge of
american monetary policy.

Go listen to liberal talk radio, if you can find a station that has not gone out of business.

Inflation goes up, inflation goes down. Interest rates go up, interest rates go down. Foreign exchange rates go up, foreign exchange rates go down. It's been that way as long as I can remember (which is much longer than I like to remember). And I imagine it will continue to go on long after I am gone. I got agitated about such things when I was much younger, but after living through many such cycles--eh.

I don't usually respond to these threads...but it's more than a little disconcerting when we are relying on foreign governments for the solvency of our treasury. It's not about travel budgets (although, ouch)...it's about being forced to raise interest rates to attract investors in our economy. I'm nervous.