annesherrod

Yawn!

Jayne11159

We got a notice from Doorways that we owe another 123 (USD) on the apt. we've leased in Rome due to the dropping dollar. We're expecting the same from our other venues. I keep asking my husband if he wants to change his mind about going to Italy this summer due to the dollar and terrorism threats. He still wants to go.

Our oldest daughter will be going off to college on an athletic scholarship (which means she goes early) in 2005, so this probably our last chance to go as a family. Some things you just can't put a price tag on.

If we go broke, hopefully one of the three kids will pay for a nice nursing home!!

Rich

Maybe daughter can sign to play quarterback for Dallas . . they need the help and she could pay for your trips! !

Rich

RAR

Or running back. She could probably run better than Teresa Hambrick.

jsmith

The dollar hit a new low against the Euro today. Maybe this quote from Bloomberg will make you feel better:

"The euro's average value during 1991 and 1992 was $1.36, based on the prevailing exchange rates for its constituent currencies at that time. Its current rate against the dollar is about equal to its 10-year average of $1.26 during the 1990s. It peaked just shy of $1.70 in September 1992."

ira

Jayne11159 wrote
>We got a notice from Doorways that we owe another 123 (USD) on the apt. we've leased in Rome due to the dropping dollar. <

Did you give them a deposit in dollars? Are you paying them in dollars. If they quoted you a price in euro, and you are paying in euro, there is no reason why a falling dollar should require you to pay more.

caribtraveler

bob brown..you're spot on.
i just heard the same explanation on cnbc:
upside: the anchor said this is good for american businesses who sell overseas..they'll sell more since goods will be cheaper, meaning the american worker keeps his job (of course not all, but that's another discussion).
downside: yes, not so good for the american tourist. but cnbc anchor added that the dollar has been so strong for so long, the current fall of the dollar is really not a huge concern (at least for now).

Patrick

Ira, I think maybe you're missing the point of Jayne's comment. If the apartment said it was 1000 euro and they are paying in euro, it still could be $123 more to them since it will cost more dollars to get those 1000 euro. And although some places will quote in dollars and let you pay in dollars -- those are usually clearly stated to be tied to the euro and adjustable. So if the place quoted them $1000 back six or seven months ago, it is understandable if they now say it will be another $123. Normally within their information will also be a price in euro, which remains the same, but if the people are paying in dollars, of course they will now have to pay more.

I'm glad my Paris apartment is not only quoted and paid in dollars, but paid to the owner in the US. No chance of that changing on me. My two apartments I'm renting in Italy are both quoted and paid in euro. Of course the prices will remain the same, but I already see how much more they are going to be costing me in dollars since I orginally booked them.

Christina

I'm not sure I understand that point about the apt., either, as even if it costs Jayne more to buy euro, the landlord shouldn't be demanding more money if she pays him in euro because the $ drops. Maybe she is paying in USD and there is no price guarantee but that's odd because if I prepay and buy something, I don't expect the seller to come back to me a month after I've bought it to ask for a price increase due to currency fluctuations. But maybe she agreed to prepay but pay constant currency changes? huh -- let's see if the landlord refunds money if it goes down (right).

First, it was only officially $1.26 today, not $1.27. Anyway, it's still better than the USD value in 1995-1996.

marktynernyc

Cheaper American goods does not automatically mean that people in other countries will buy them - other factors such as quality and consumer loyalty influence a person's purchase. Being that 2/3 of our economy is based on consumer spending I think its interesting that this administration is now looking to other countries to keep us going - could it be many Americans have max out their credit cards, cashed out the equity in their house and spent that $300 tax refund? Ultimately the solution is cut back on how you spend your $$$ and make more $$$. (I'll admit that South American is starting to become a more attractive destination.)

Jayne11159

Doorways is based in the US so we paid our deposit in USD and the balance increased due to the dropping dollar. If we had paid in full when we booked it would have been their "tough luck". Since we didn't, it's ours. Patrick makes a good point and you can be sure that this week we are paying the balance on this apartment. Our Tuscany apartment won't accept early payment (due to the drop I'm sure). Same in Switzerland, although they're still using CHF.

Rich and RAR--my daughter is a 110 pound volleyball player so I'm afraid you'll have to look elsewhere for help--but I'm afraid it's too late!!

Beatchick

Ira, when I last went to Paris (April 2003) the it was $1.08 to the euro. So with the rise to $1.26 or $1.27 that represents for me of about 17%. That's a LOT! I was planning on taking my kids this year and was budgeting very stringently. What I was hoping to be a $5,000-$6,000 trip may turn out to be $5,850-$7,020. The budget is so tight I doubt we can swing that right now. So we'll wait 'til Christmas hoping it'll drop (or we can build up more cash).

Amen, BTilke & marktynernyc!

WanderingTexan

My daughter is getting married in Italy in June. All the family is going and plan to travel after the wedding as well. The falling dollar is stressing me out!