Just read today in a financial website:
Italy is the reason that the Euro is falling. Their country is in a "contraction" stage - read that as - - recession.
Good thing the US is just in an "adjustment" stage.
Bummer for us, we made a deposit on a trip in Euro when it was at $1.64, now today it's down below $1.50. Might be a good time to wait and watch before booking in Euro to anywhere in Europe! Come on January 20, 2009!!
Ellen,
Thanks for letting the rest of us know that! I have been totally depressed as I watch the dollar fall and I try to plan a trip I can afford. Maybe there's hope!
Ellen.....
When did you book your trip that the Euro cost $1.64? I have been watching the euro very closely since we bought our plane tickets back in March and have not seen it over 1.59.
I see that you are leaving for your vacation on inauguration day. I'm sure that's what you were referring to since we all know that we are not supposed to get political on these travel boards.
If you have reservations in Europe you can always go ahead and pay them in full now at the better exchange rate if you want. Could be a little risky if something should happen and you cancel your trip.
This is way none of us are going to make a fortune in currency trading. I can remember six months when many posters were encouraging people to prepay expenses, buy Euro now, etc. It goes up, it goes down. Very hard to win at that game.
I know she was referring to change of administration. The economy has an emotional component and it hates uncertainty. The economy doesn't care who wins. Just wants to know that someone is in charge and that there is plan.
6 yrs ago 1.00E = $0.95, then the dollar started falling 6 yrs ago, it was slow at first, $1.10, 3 yrs ago was $1.20, then $1.35 in 2007, Dec 2008 maybe $1.50, then $1.61 it topped out at earlier this year. Today $1.53 typical ATM rate (interbank rate + 2%).Given this history, it's a little premature to start celebrating "Hey Europe's affordable again!" This morning's ATM rate is the same as what it was earlier this year, still very high compared with recent years.
I believe the Euro is going down because Americans aren't buying any European products as they are now too expensive. If they want to continue exporting to the US, they ECB needed to drop the Euro. So, even though for tourists from the US it has been tough watching the dollar drop, the export of products to Europe has risen which has been good for the US economy. When you are talking exchange rates though, it is impossible not to take into consideration the politics of the various countries. It truly does affect the dollar. I have watched it jerk up and down the last 22 years here, and it often had to do with what was going on in the White House and the decisions that were being made there.
As a follow up to Kent's observations above, I remember when the $ was worth 4 DM (late 1960s)...it had fallen to about 1.5 DM to the $ by the time the Euro was introduced. The biggest common denominator between these two eras is the never ending deficit funded war in which we are and were engaged. We have only begun to see the effects of this war. Absent run-away inflation in Europe, we can expect to see the $ continue to decline for the next 5 - 7 years.
When you see a rate for conversion, it is the bank rate. What we poor travelers pay is quite a bit more (usually at least 5 cents on the $). That said, it is amusing to hear people talk about better Dollar/Euro exchange rates. The $ is rapidly becoming a Third World currency due to rampant borrowing to meet current expenses. If anything, barring a collapse in Europe (which means one here, as well) there should not be an appreciable improvement in relative value and it is very likely that the Euro will be increasingly expensive
Wanting to bring some Euros with us to Italy, I called out local AAA office. They offer 50E for $100. My bank doesn't carry them. Where else can I get them?
The "highest" ever the EUR vs USD was 1.6036 or so on around 7/30/2008.
50 euro for $100 is a rip-off! You can buy euros at the airport, either at departure in the US or arrival in Europe. Or get some out of the ATM machine when you arrive here. You should be able to get around 63-65 euro for your 100 bucks. So your bank has a conversion fee of $13-$15 since they have to order the euros. Buy them here, it is easier. You can also buy them at most banks here, but if you don't have an account, they will charge you about 5 euros. But that is less than the Money Exchange places charge. ATM is the way to go. My husband has a Bank of America account and if he uses the Deutsche Bank ATM he has no charges as they are "sister" banks.
Kathy: Are you sure that's what they said? There must be some mistake; I've never heard of $100 to get €50, that's $2.00 = €1.00--if that's what they're saying, don't do it.
Yes, Kent. I called via phone. It was stated at AAA that it is offered as just a convienience; $100 for 50 euros. Which is why I wouldn't even consider it. It is a rip off. Convenience asside, no one likes to knowingly get ripped off.
Thanks for the suggestion of using the ATM at the international airport, point of departure to start, then as soon a we arrive, at our 1st European arrival.
Kathy,
Commercial banks will get Euros for you. The price is more than you would pay to simply use an ATM when you arrive (they are conveniently located everywhere). As a backup, bring some large bills (read low bulk) US currency that can be exchanged at any change booth or bank for local currency. Again it will cost more than simply using an ATM.
Re. the suggestion to take large US bills as a back up. Apparently the US $100 bill is the most counterfeited note in the world, this means that a lot of bureau de change won't deal with them.
