Exchange rate dollars to euros

We just finished a big discussion of that exact subject yesterday, here's that discussion and the reasons why the consensus was that purchasing a large amount of euros and bringing them with you is not a good idea: click

After you read Kent's very reasonable explanation why carrying around a large sum of money is not a good idea, just think about this. Even the most educated guesses of a central banker on the position of currency in 30-60 days is only slightly better than a 50/50 gamble. Trying to predict this far out... well, your guess is as good as mine!

Thanks for your advice Kent and the others' from previous postings. Maybe it will improve if I wait and use mostly ATMs.

It is a tough guessing game. For a couple of days the dollar improved slightly but the pending rate cut by the Fed Reserve will drive it down again, However, an article in today's WSJ suggested that the Europeans would have to make some moves in the near future to strengthen the dollar for their own purposes. It is anybody's guess.

Following up on the good points by Frank: between 4/18 and 4/28 the dollar strengthened by about 3 cents against the euro, with the interbank rate improving from $1.59 to $1.56. It will still cost us folks who are not banks about $1.59 (interbank + 2%) at the ATM machine.

The official rate today was $1.54/euro. Let's hope this represents a trend.

For those keeping track, we are down to $1.53 per euro today...

Today the Oanda.com website Oanda currency cheat sheet gives an interbank rate (that banks get for million dollar transactions) of €100 = $155 and the "typical credit card rate" that you and I can get (interbank rate + 2%) at €100 = $158.

I would not purchase anything. Why are you going to take Euros with you? Take $100.00 in euros and use your atm card for your euros on a daily basis. Probably the euro will strengthen a bit by august thanks to george bush!!!

now - or you may end up paying more. at least a few 100$ worth - if you need more use atm there.

Most economists are expecting to Euro to settle between 1.4 and 1.5 for a while. Europe is just about a year beyond the US in terms of economic troubles and when it does hit them it will be far worse off than the US beacuse of its huge social service deficit and relatively less strong economy than the US.

OK, on the other side of the coin... we get paid in Euros so.... let's hope that both sides of the "pond" have a better economy next year!

:)

Ciao,
Ron