Euro Yikes!!

Cate,

Still a lot better then $1.65 or whatever it was last summer when I started planning my trip. The way I am thinking, I am still under budget. I know, probably wrong, but it keeps me focused in these economical times. "But, honey I have to go, the dollar gained strength and I just saved $900 from last year" Lets all keep fingers crossed that at least it maintains.

I leave in 7 months, hate to see what it will be then.

Happy travels,

Kristen

I hear what you say! I was able to lock in a $234.00 savings on my lease car, good timing as far as that goes. But hopefully it will hold steady for the next few months, I leave on May 10th myself, so let's hope for the best.

Relax, folks, the dollar is going to be up and down, the stock market is going to be up and down, gas prices are going to be up and down--there's no point in fretting too much because honestly, there's nothing we can do. Volatility in these things is going to be a fact of life for the foreseeable future. And unfortuntately, European price inflation in hotel charges and so forth is probably a bigger factor than changes in the exchange rate in what we end up paying.

The odds are that the dollar will rally some (or to put it differently, the euro will fall some) when European banks react to the crisis by lowering their discount rates again.

Keep in mind that you can choose to "hedge" against a falling dollar by paying for some things in advance. A lot of hotels will cheerfully let you pay for your booking in advance, for example. Then if the dollar falls against the Euro, you've paid for it in stronger dollars, hedging against the meals and entrance fees that you still have to pay in weaker dollars. And if rates go the other way, you are buying discounted meals etc. with stronger dollars, though you took a loss by buying your hotel with a dollar that was weaker then. That's the point with hedging--you are gambling about which direction the Euro and dollar will take, knowing that you are guaranteed to make out well on some choices and less well on others, as opposed to either lucking out on everything or taking a bath on everything.

I made a deposit on our vacation when the Euro was $1.65. Darn. I've been making monthly payments at $1.54, $1.32. I figure it will all average out in the end. We don't leave until next year, so at least I will have the package paid off, then just have to have $$ for 2 nights hotel, train tickets and some food.

The dollar is up and down, as as the previous poster noted, no reason to get crazy - at least it's not back up over $1.60 right now!

If you want, go to Wells Fargo and buy Euro now if you think it will continue to rise. It's all a guessing game.
No one wins - you just get lucky.

Yep, major bummer to see it go from $1.24 to $1.30. But this morning it's at $1.28. So I'm keeping my fingers crossed but not really worrying about it.

I leave in three weeks, and this summer I budgeted my trip at $2 to the euro, so even $1.32 sounds pretty good! As another poster mentioned, the EU will likely follow suit with cutting interest rates and the euro will slide again. No point in worrying about it. For me, going to Italy is worth it at any exchange rate.

I keep reminding myself that while there, I have more control over the amount I spend to a much greater effect than exchange rates. That said, it is nice to regain a little more towards parity, though not thrilled in the way it was accomplished since fear of recession and the collapse of Oil prices, as well as Europes own economic problems tied to our own are the culprit.

Oh yes.......It is not a good situation for us.....

Another way to look at this is to save like crazy and have a set budget for the entire trip....... do your best to find good deals .......but at some point ........ just decide to pay what it costs ....and then enjoy......otherwise......it will make you very crazy and......who needs that when you are going to go Europe and have a wonderful set of experiences....

no...I am not rich but it help my mental state on my month long trip.......

Keep breathing!

I cannot believe how much we paid for the Euro and pound in early May. And now it drops????

Hoping for a good rate if we go away this December.

it was nearly $1.60 per Euro last January when I was there, so count your blessings!

If these xchg rates stay steady, I may just go back to Scotland for a visit. My last trip to UK was in 2006 and I thought I would never be able to afford it again.
Just maybe I can make it happen, if I find a good fare from SFO to scotland. Anyone hear of a low fare there in the next 6 mo?