The dollar is dropping by the day!
 

I am really bothered by this! I just checked: 1US$=107Euro. A few months ago it was at 1.18 This morning it dropped from 1.09 to 1.07. Excuse my French but that sucks! I was planning on being in Europe a month and these few centimes can make a difference. Dont let anyone kid you and at the rate its dropping is not encouraging at all.

Currency exchange rates like any other commodity respond to the forces of supply and demand. For years, the US economy has run a negative balance of payments in the world trade markets, and now the supply and demand picture is working against us. Dollars are in plentiful supply, and like anything in plentiful supply, the price drops. <BR>I am under the impression that most economists will tell you that if the net outflow of money from the US is negative, that is we spend more than we receive, the value of the dollar is going to decline. There is no simplistic answer to the problem, but as the economy of Europe changes, the rates may swing even more in favor of the euro. <BR>Some of the current administration's trade policies are not helping either.<BR>A few months ago, a trarrif war over steel imports and exports got started -- at the Republicans instigation.<BR>If we reduce exports, the balance of payments swings even further against us.<BR>We will see if I am right or not. <BR>Hard as it is for us to accept, in the long run, evening up the balance is to our long term benefit internally.<BR>

Sounds like this is great for American business overseas but not good for us tourists.

ttt

Look on the bright side, when the EEC went to the Euro, the intention was that it would be pegged 1 to 1 against the dollar. American's have been getting a relative bargin for years.<BR><BR>Not the place for an economic debate, Bob Brown, but I flat out disagree with your blaming the republicans for a drop in the dollar. BTW, I'm a moderate.

I just checked and its at 1.06. I also have been keeping an eye on the dollar and it was at 1.10 2 days ago.Last few weeks 1.14. This is significant and I agree with Angela that this sucks!

I agree, it isn´t good news to American tourists. But remember, your industries benefit from it. And I benefit as a tourist. Last time I travelled is US, dollar was almost half of the value it has been for last years. Last few years travelling to any country where prices are counted in dollars has been extremely expensive. And that means also all the Central American countries and many Asian countries. I was lately in Cuba, and because all prices were in dollars, oh boy – that sure was an expensive trip!

Boo hoo,<BR><BR>try travelling to Europe on Canadian or Australian dollars! Quit whining and realize how lucky Americans are when it comes to travelling.

I don't know where you are checking.<BR>I just looked and 1 US = 1.0961 Euro.<BR>at Bloomberg.com.

OANDA just showed 109.45

Depends on where you look at which rate they are quoting. At www.xe.net it's 1.06952<BR><BR>And at about 7ff to the USD -- it's a lot better than the 5ff rate we got back when.

You have the $$s to go to Europe and you complain about a 5% swing in exchange rate????? If you spent $4000 on a trip that comes out to an extra $200 in cost - give me a break - quit ya whining and be grateful you have the opportunity and money to go at all<BR><BR>No wonder the world gets annoyed by us americans and our complaining.....

"Earlier this week, the dollar reached a seven-month low of 91.9 cents per euro, but then it staged a spirited recovery, posting its biggest one-day jump relative to the euro since January. On Thursday, the dollar slid to 90.94 cents per euro." That's still pretty cheap, when you consider what it was being valued at in 1999, when prices were first being expressed in Euros (several years prior to introduction into actual circulation): $1.17 U.S. per Euro. The Euro is still seems to be firmly in the low end of its value range vs. the U.S. dollar. The past couple of years have been a very good time for U.S. tourists and that situation still prevails, but expecting things to stay that way forever is expecting way too much, IMHO. <BR><BR>

Some people ARE on a tight budget and a swing of $200 DOES make a difference.

Here's a tip for your next trip, Angela: budget conservatively, assuming that the exchange rate will worsen by some percentage. That way, if it does worsen, you won't break your budget and, if it doesn't, you'll have more money to spend.<BR><BR>Budgeting for a trip assuming the exchange rate will remain the same -- when it always fluctuates -- just isn't good financial planning, IMO.

If $200 is going to be the difference in going on not or your $6000 trip......I don't know.<BR><BR>Scuseme

You are going the wrong way. At 1.06? to the $1USD, it is about 5% less than what it was when the Euro went into effect (Euro=$0.90). Puhleeze, if you are figuring that close you are in the danger zone.

This is SO SO much better now than when I have traveled to Europe in previous years. You first time Europe travelers don't know how good you have it. So what if it's not as good as it was a month ago, it is still OUTSTANDING! It is all relative....Ben