Cdleebunny28

Hi all,
I have seen the horrific news today that one US dollar is equal to about 1.33 Euros. Am I going to get reamed on my dollar, or are things cheaper in Italy than in the US? I appreciate all of your input. Thanks!
Dani

Budman

Dani, there have been several threads on this board over the past several weeks, all whining about the value of the Dollar vs. the Euro.

It is what it is. Sorry, but you are just going to have to deal with it, cut back on your intake of gelato (hard decision to make), and make some other cut backs to help you cope with the situation. You will have to make some hard decisions.

Other alternative -- stay home.

AR

The "experts" here in Europe reckon the dollar has quite a bit of falling to do yet, so things could get mighty expensive.
They reckon on $2 to the £ very soon (it was $1.89 yesterday).
Still, the good news is that I'm on the way to NYC in Feb.

Budman

AR, we welcome you to the States. Please spend <b>lots</b> of your money.

Powell

My guess that is 1:35 to 1:00 will be the top exchange rate. If you travel over a number of years this tends to level out.I traveled seven years or eight years ago when the rate was .80 to 1.00 and heard no outcries. The German and French economies are moribund, high unemployment, low productivity, etc. Their central banks will be under pressure to lower the Euro, hopefully sooner than later.

As a friend said to me if you do not like the exchange rate welcome to Nebraska in June (no slur intended on Nebraska.)

Weadles

Unfortunately most things are not cheaper in Italy than in the U.S. The Italians are suffering, too. The price of basic goods has skyrocketed since Italy converted to the Euro. But since the alternative is staying home ( no thanks!) I've simply cut out all needless purchases except gelato!

ira

dear cd,

First - it is $1.33:1.00E not the reverse

Second - Do not bring dollars. Getting cash from ATM's (bancomats) when needed, and charging everything chargeable will get you the best exchange rate.

Third - Some things are cheaper in Italy, some are more expensive.

It is still cheaper to spend a week in Rome or Florence or Venice than in NYC, Chicago or SF.

AR

Powell is quite correct. In fact, the US is the clever guy in all this as Bush is doing the country a favour by borrowing as much as he can at just 4% from foreign investors and then devaluing the dollar. He has therefore helped American businesses to sell more at the expense of foreign competitors. As the UK is close to full employment, the falling dollar is quite welcome to the economy as it reduces inflationary pressure and will allow the Bank of England to reduce interest rates.
Japan has diverted much money into Euros which has caused the Euro to become ridiculously overvalued. The loser is the European Central Bank who will have to cut their interest rates even further to stabalise the global economy.
All this means that the Euro-land has become expensive and the US is laughing all the way to the bank. The losers? Well travelling Americans - however, as only 20% have passports, I suppose that it doesn't really matter. Meanwhile, the US is tempting all of us over the pond for Christmas Shopping - boosting your economy further.
The answer is not to go to Italy but Vegas instead!

KT

With all due respect, this is not what I would call &quot;horrific.&quot; I'm going to Italy soon, too. I'm already a budget traveller, and I'll be cutting back even further. But horrific? I'll be in Venice while people are getting slaughtered in Darfur. That's horrific.

As has been mentioned, there have been a large number of (whining) threads about this. There are some practical suggestions -- stay at less expensive hotels, don't eat all meals at restaurants, cut your vacation short by a day or two if you need to.

RufusTFirefly

AR--while most Americans don't have passports, many do travel to other countries where they don't need passports.

RufusTFirefly

Back in 1990 the GBP was almost at $2.00. Back in the early 1980s it hit close to $2.50.

TexasAggie

Does one get a better exchange rate using credit cards (the ones with the lowest percent fee charged, like MBNA at 1%), or using their ATM card to pull out Euros?
Or is it about the same?

Patrick

&quot;I've simply cut out all needless purchases except gelato!&quot;

Sorry, Weadles, but your post simply makes no sense. Since when did gelato become a &quot;needless purchase&quot;?

RufusTFirefly

Back in 1971-2, one British pound cost over $2.60.

P_M

Rufus wrote: &quot;AR--while most Americans don't have passports, many do travel to other countries where they don't need passports.&quot;

I'm glad you brought that up, Rufus. Whenever this subject comes up when I'm speaking with European friends, they always presume that Americans without a passport have never left the US. The fact is that we can travel to Mexico, Canada, and most Caribbean islands with only a birth certificate and photo ID. And of course, those travellers are being affected by the declining value of the dollar.

As for myself, I will continue to travel to Europe, and I have planned 2 trips already for 2005. While it's more expensive than it used to be, it's still worth it for me. Furthermore, there are some things that I will not sacrifice while travelling, such as gelato in Italy. (or any other country, for that matter). Weadles, I'm glad you have your priorities in order.

massagediva

KT, thanks for a little perspective.

Ryan

My only comment is your use of the word &quot;horrific.&quot; The dollar falling without it resulting in inflation is actually beneficial to many Americans. It sucks for tourists who expected the abnormally low and unsustainable exchange rates of 5 years ago. It's worse for a European manufacturing company trying to compete with their American competitors.

So, back to your question, if you think a 1.33 level (which may very well rise to 1.35, or better) is getting reamed, then yes, you will get reamed for at least the next year. The factors causing the decline in the dollar aren't going to go away anytime soon and it is unlikely that the European Finance Ministers can really influence the rate, should they choose to.

AR

As this forum was discussing whether the poster's dollar's spending power was going to get it's arse kicked travelling to Italy, I presumed that I needn't qualify my statement with regards to passport ownership and free movement within the North American continent. The same is true for Europeans with ID cards where they can move freely within the EU states without a passport. I would not, however, quote that in a forum where the questioner was asking about travel outside Europe as it would have no relevance.
Apart from an unrelated aside, the rest of the posting is true.

P_M

I didn't mean to offend you, AR, but in your post it sounded like you were saying that only 20% of American tourists are affected by the unfavorable exchange. I was only pointing out that the number is much higher. I agree that the weak dollar has it's benefits in other sectors of the economy.

ira

Hi TexasAggie

I think that your best bet is to charge as much as you can on a CC that doesn't add anything above the 1% charged by VISA/MC and using ATMs when you need cash.