The £ may hit the $2 mark this week, according to some analysts. It's pretty close to that anyway, so American travelers to the UK won't be much more sticker shocked than they already are. And the strong £ isn't particularly good news for the UK. However, if the Chinese sell off notable chunks of their $$ holdings, the dollar may weaken against other currencies, inc. the €. Maybe they won't, but I wouldn't expect to see a significantly stronger dollar anytime soon.
http://news.bbc.co.uk/1/hi/business/5250250.stm

Yes, most of the betting seems to be favouring a continuation of what's been a long if lumpy slide in the value of the US$. Another threat (I believe) is that if oil-producing nations start accepting payment in euros as well as US$, many countries won't need to keep their current levels of dollar reserves and will start unloading. Allegedly Iran has been planning to do just that, as was Saddam Hussein before the invasion.

For entirely selfish reasons I'm hoping to see a drop against the AU$ before we leave for the US in a few weeks' time - "it's an ill wind that blows no good".

Which makes everything in the US a steal for foreigners. Come on over - bring as much money as you can! Spend it all and then some! Buy big ticket items - 787s for instance - and don't worry about lost wages at home or balance of payments! Who cares about that egghead talk anyway? Wahoo!

Well the strong Euro versus the dollar certainly doesn't thrill me when I go to Italy but than I remember when the Italian lira was worth so little and the US Dollar was so strong. No doubt it all evens out one way or another.

And hurry up and get here Neil!!

Glad I'm going to Hawaii this fall. It'll be nice to travel without thinking about the exchange.

In 1972, the GBP bought $2.60
In 1980 it was $2.40
In 1990 it was $1.95
In March 2005 it was $1.90

Not the least bit surprising given the current Administration's well-known support of the so-called "weak dollar" economic ideology.

And no, this isn't "bashing" but simple fact. It always seems to cost more whenever we travel abroad and I expect it to remain so and try to plan, and travel, accordingly.

I remember in the late 80's...it only being $1.57 per pound...not so bad...

We're traveling in September and luckily pre-paid most our trip at the $1.84 rate...now I'm not feeling so bad...but hey, most the great museums are FREE! And so are the views! So let's live it up in the UK!

Tara

Unfortunately the $ is weakening against the € too. Last check at xe.com, it was almost $1.29!
If the oil countries start taking €'s in addition/instead of $$, the exchange will probably get worse.

Anyone really surprised?

This is due to the recent interest rate increase of the european central bank and speculations on an even weaker USD. The € has weakened against most other major curriencies, except the USD.

Do keep in mind that as the USD declines, it might cost us more for travel and foreign manufactured goods, but more people will buy our soybeans and other agricultural products, as well as our timber and other raw materials.

Also more foreigners will come here as tourists, providing more jobs for unskilled, uneducated labor.

That's good for a develping economy.

Ah, so that explains why people working in the tourist industry in the US often seem unskilled and uneducated!

Neil, for entirely selfish reasons, I'm hoping for the opposite move in the AU$ vs the US$ before we leave for Australia in a few weeks' time.

I was in the UK in June of 1985, just after the pound hit what I think is the all-time low against the dollar.

1985-02-01 1.0931
1985-03-01 1.1253
1985-04-01 1.2377
1985-05-01 1.2483
1985-06-01 1.2808

http://tinyurl.com/ebebb