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And the dollar rallies!
If you've been in the EU or Japan any time in the last 18 months or so, you've probably walked away from a currency exchange or ATM scowling. With the American economy virtually in the dumpster, oil sky high and our trade deficit in the stratosphere (but coming down!), the value of the dollar has been plummeting like it's out of style.
While few economists can agree on whether this recession will end (or even if it is a recession, proper), what they can observe is the state of the European economies -- and apparently they're not doing well either. While their struggle with the credit crunch and mortgage crises haven't been as pronounced as the Americans', the Europeans haven't been immune to money problems of their own, most notably fuel and food prices.
So while we might be sinking further into the depths of the credit netherworld, at least the Europeans are right behind us -- and so is their currency. Against the Euro, the US Dollar has spent the last month running for the trees, gaining about 8% in thirty days with Ben Bernanke cheering from the stands. That means when you slip a hundred dollar bill under the TravelEx exchange in Heathrow you'll be getting $67 back instead of $62.
It's not too late to book that Thanksgiving trip to Mallorca.
[image courtesy Yahoo finance]
While few economists can agree on whether this recession will end (or even if it is a recession, proper), what they can observe is the state of the European economies -- and apparently they're not doing well either. While their struggle with the credit crunch and mortgage crises haven't been as pronounced as the Americans', the Europeans haven't been immune to money problems of their own, most notably fuel and food prices.
So while we might be sinking further into the depths of the credit netherworld, at least the Europeans are right behind us -- and so is their currency. Against the Euro, the US Dollar has spent the last month running for the trees, gaining about 8% in thirty days with Ben Bernanke cheering from the stands. That means when you slip a hundred dollar bill under the TravelEx exchange in Heathrow you'll be getting $67 back instead of $62.
It's not too late to book that Thanksgiving trip to Mallorca.
[image courtesy Yahoo finance]
Filed under: Business
Reader Comments (Page 1 of 1)
Jen Aug 17th 2008 3:39PM
I was so shocked at the exchange last summer. This year I was quietly resigned to the further demise of the dollar. I guess I took my trip a little too early this summer, right when the dollar was at it's lowest!
In your last paragraph you claim the dollar has regained about 8% against the Euro, then use and example that has nothing to do with the Euro? Exchange $100 at Heathrow for $67? Do you mean £67? Then you are talking in British Pounds and not Euros.