xyz123

Well well well..

The economy of the country (USA) is in the tank but the USD keeps rising

Today's close

€1 = $1.3672165863

Next the psychologically important $1.30 rate...where it was 3 or 4 years ago....

Can $1.17 be far behind (the original rate)

BTW

Today

£1 = $1.7283905694

Can $1.60 be far behind?

Of course there are those on this board who thought €1 = $2 was on the way!

cherrybomb

It isn't that the dollar is rising, the euro is falling as worldwide markets correct.

But if it makes you feel better to say that the USD id rising, by all means.

november_moon

Well - which ever way the US$ is moving, in comparison to the Euro it means trips to Europe aren't as expensive - woohoo.

LaurenKahn1

If I could have the money "missing" from my retirement plan, I would gladly settle for a lower dollar. The exchange rate is small potatoes compared to the big picture.

FainaAgain

I am checking a hotel's price in Zurich through Expedia, when I saw $260 a night, nearly fell out of the chair. Yesterday it was $207

Hey, a gal can dream, and I dream big

suec1

Oh yes I am so excited - my dollars are worth more but unfortunately I have so far fewer of them! We head off on Sunday to Budapest for a city stay and river cruise - just keep wondering if this is my farewell trip to Europe. If that's the case - I WISH I WAS GOING TO ITALY!

november_moon

Lauren - If your portfolio is diversified, then you will get the money back that is missing from your retirement savings. Just have to ride out the downturn and wait for things to come back. In the mean time, pick up some stocks at a discount. As long as you aren't on the cusp of retiring, you've got time to wait for the rebound.

Retirement is long term planning.

For short term planning, such as vacation, the Euro is looking nice

LaurenKahn1

I am not stupid and am well aware of the above strategy.

Now please elucidate how this advice benefits those who are retired or are about to be retired. It took over 10 years after the Crash of '29 for the market to return to where it was at the time of the crash. By that time, many of the people affected will be dead.

The advice you gave is totally useless advice. Most retireds have conservative investments, but even those took a huge hit. Retired people make up the largest group of people who travel by the way. There are going to be a lot more of them staying home.

logos999

>who thought €1 = $2 was on the way!

I'll bet one box of Augustiner beer, that before 12/31/08, 1€ will cost $2 or more. .

It's all over. Today, I was at the post office, standing in line, the majority of the folks wanted their ID's checked to open up bank accounts. They bring all their money home from places like Iceland, where it's not "safe" anymore.

The banks will open checking and savings accounts without any fees for anything now. Even Postbank was aggrssively looking for new customers. "No fees, free withdrawals from you credit card from anywhere... (And in this country when banks say free, it has to actually be free).

Pro Aurum has closed, they say they don't sell any gold or silver anymore, there's nothing left to sell. Ögussa in Salzburg still sells gold, but at inflated prices.

I'll watch what happens at the supermarkets during the next days...

logos999

I'm going to sell Yen and buy Aussie $$ tomorrow. Looks like a good idea. The AUD has been HAMMERED down.

LaurenKahn1

The bottom line is that no matter what currency you have, everything is going to cost more and you are going to have less money to spend. I personally would not be surprised if the dollar goes down again due to the system of financing the War in Iraq (deficit financing largely with Chinese loans). The US has incurred a huge deficits with no possibility of paying for them. The time may come when we renege on our obligations just like some 3rd world country.

november_moon

Pulling out the big words to prove the validity of the first sentence of your post, eh Lauren?

For the record, I don't think you are stupid and didn't intend to imply that I did. As for my advice, it isn't useless. All I said was that if you aren't on the cusp of retirement, buy low and wait for the rebound. Pretty solid, as far as I am concerned.

Anybody on the cusp of retirement needs different advice.

xyz123

I have a great idea...

Buy low and sell high!

worldinabag

Err, I hate to be a wowser here but these wild currency fluctuations are symptomatic of a very, very, very serious meltdown of the global financial system. If not corrected that means loss of savings, businesses, jobs and inevitably travel plans. At this point the "best" result we can hope for this mess is a global recession. So I wouldn't be rubbing our hands with glee just yet!

djkbooks

I think what november_moon means is buy more while it's low. Every time my 401K has dropped, I've increased my contributions. Many, many downturns have recovered sooner rather than later, and putting more in has always worked splendidly for me.

As someone said, "You will never retire on the money you save for retirement; you will retire on the money you make on the money you save for retirement."

LaurenKahn1

I could not agree more. And the people yelling "buy now" are, well, not very savvy. If people lose all their money, how are they going to buy?

Insofar as retired people are concerned, since we don't allow people to starve to death in the US (last time I checked), we are going to have to help them. That will mean all of us are going to have to pay for it--which means less discretionary income to travel. Blithely thinking this mess does not affect you is, well, not too savvy.

WillTravel

I just can't see most people getting all excited by the dollar rising against the Euro and booking trips in consequence, if they have also lost tens of thousands or more in investments, or maybe even lost their jobs.

LaurenKahn1

I think I said something like that but you said it, Will, in a more pointed fashion. Who cares about the exchange rate when you look at your retirement plan?

hetismij

Please don't flame me for this but...
Wouldn't it be more patriotic of you all to spend your dollars at home rather than in Europe? Surely that would help your economy?
One reason the Euro has dropped against the dollar is the fall in oil prices.

WillTravel

I don't think the path for Americans to help the US by stopping travel is that simple.

Just to give an example, what if the patriotic American patronizes a hometown restaurant where the owner remits money home to poverty-stricken relatives in another country? Or maybe the hometown American restaurant owner uses her earnings to fund her own trip to Paris.

Or what if the American visits a European B&B, and the B&B owner then uses his earnings to tour the US? What if the American flies on a US-based airline to Europe, or stays at a US-based chain?