EURO

The momentum is in our favor at this time. It can (always has) turned around.

We have our tickets and are leaving in a few weeks so I think that we will get a decent exchange. It could all change by next spring.

One thing we can do to keep a more favorable rate is to import less oil, our principal import. That is another reason that I used a bike for my errands this morning.

Regards, Gary

Right Gary -- we should drive less, and get fuel efficient cars, like in Europe! Will help us all get there again real soon.

The recent rate changes are favorable to US travelers right now for the wrong reasons- banks aren't lending to each other, dollars are harder to get, so the value increased against the euro (and the euro declined for other reasons as well). Good time for currency exchange for traverlers, bad time for financing your trip off of investments.

Yes, I was there in July -August 2008. And just this week I calculated I could have saved over $200 per wk with the current rates. Regardless I had a wonderful time.

Tanking a bit today. : (

Can you purchase several hundred dollars of Euros while your in the states? We don't leave until December but if I can get more for my buck now I will go ahead and exchange my money.

You can get Euros through AAA or Bank of America. I've recently got some for my upcoming trip. The fee is not that high but you should shop around. You might also want to check with your bank.

ALso try ezForex - Euros delivered right to your door.

Good group here expounding on their travel expertise which helps ALL of us in our future journeys.

Be careful purchasing Euros here. Keep in mind that your best bet is euros from an ATM at ~2% over Interbank rate. So $1.25 euros will cost you $1.28 there. Compare that with the rate and fees for getting here (including delivery charges) If you can walk up at certain Wells Fargo counters, it might be closer to $1.30, AAA may be as high as $1.35. Just make sure whatever transaction you make you consider all fees and rates to compare. A good exchange rate is not if they tack on $10, and "no fees" is irrevalent if they chrge you 10 to 15% in the exchange rate.

laura, so you want to be a currency speculator :-)

If you're worried about the Euro rising relative to the dollar there IS an inexpensive way to hedge. Its by purchasing shares of an exchange-traded fund (ETF)called FXE that has been trading since the start of 2006; each share represents 100 euros. You buy ETFs just like you'd buy any other stock, and with low-cost brokers your buy & sell costs are only a few dollars. The Euro rises, you make money (and pay taxes on gain). Euro falls and you lose money (although the losses are deductible from your taxes).

Its up to you whether you'd rather do this or hold the Euro's directly, but I wanted to let you know of the alternative to paying the bank markup.