Foreign exchange market favorable to American travelers in Europe

United States Travel Blog

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http://www.examiner.com/x-5110-Dallas-World-Travel-Examiner~y2009m3d5-Foreign-exchange-market-favorable-to-American-travelers-in-Europe

The current economic crisis has created disarray in the financial markets, but it has made the foreign exchange rates more favorable for travelers. For the past two years, traveling in the Eurozone has been roughly fifty percent more expensive than when the euro first began circulation in 2000, due to changes in the foreign currency market. If you have dreams of traveling abroad now is the time to do it for less.

In 2000, one euro was traded for approximately eighty cents. The new millennium brought on a stronger European economy leading to steadily increasing value of the Euro. At the same time, there was growing uncertainty about the U.S. political and economic situation resulting in a weaker US dollar.

The Euro peaked in August 2008 at a price of $1.60. The economic crisis has hit Europe causing the euro to drop to current prices fluctuating around $1.22; a level last seen at the end of 2006.

The British pound, GBP, is another currency damaged by the financial turmoil. The current rate hovers around $1.41 per pound. The pound was at a similar price from autumn of 2000 to the beginning of 2002. After 2002, the pound sky rocketed against the dollar to a high of just over $2.10 at the end of 2007.

What does the fall in the euro and pound relative to the dollar mean for travelers? A hotel room in France at a price of €100 would have cost $160 in the summer of 2008 but only costs $120 now. A batch of traditional British fish and chips at a price of ?12 would have broken the bank at $25 at the end of 2007 but now only costs $17. Not to mention the overall price of flights, hotels, and tours have fallen, because fewer people are traveling during the recession.

The website www.dailyfx.com is a user friendly resource for monitoring the fluctuations in the foreign exchange market, and a useful tool for gauging when to make travel reservations and exchange dollars for foreign currency. If you have dreams of traveling abroad or if you have already been and want to return, now is the time to get on a plane and jump the pond.
Frederic83 says:
Hello dear ! your article is right, but for us , french people for example, it's very interesting to go (make shopping, buy appartments or others ...) in the States. Lots of Hotels in the Cote d'Azur are not so expensive, lots of them have kept low prices ... - (not in Nice, Cannes or Saint Tropez !) ... in the deep back countries ... not far from Med. sea !, have beautiful day in Texas !
Posted on: Jun 28, 2009
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