Spain, Euro Worries, Rising Dollar Value, etc.

[TLCOhio]

For those planning Europe trips in the next few months, it might be good or bad news on the sinking value of the euro versus the dollar. It depends on how you've reserved your hotel, etc., at what prices/currency, etc. Do you buy your euro ahead now or wait till on your trip using ATM's with the rate at that time? Interesting choices!

 

From the Reuters newswire in the last few minutes, they have this headline: "Euro tumbles on debt woes" with these highlights: "The euro hit an 18-month low versus the dollar and European shares fell sharply on Friday on speculation that fiscal austerity in some euro zone countries may stifle economic growth. European authorities announced a massive debt safety net for Greece, Spain and Portugal this week, but investors remain skeptical whether those countries can take the pain of overhauling their poor public finances. 'The euro hasn't derived any benefits from any budget cuts from Spain and Portugal,' said Chris Turner, head of FX strategy at ING, which forecasts the euro will be at $1.15 in six months."

 

From the Business Week/Bloomberg News, they have this headline: "Euro Drops to Less Than $1.25 for First Time Since March 2009" with these highlights: "The euro fell below $1.25 for the first time in 14 months as Deutsche Bank AG said Greece may struggle to repay debt and El Pais reported that France threatened to leave the euro during talks that led to this week’s almost-$1 trillion bailout. The 16-nation currency was poised for its fourth straight weekly drop against its U.S. counterpart as Deutsche Bank AG Chief Executive Officer Josef Ackermann said Greece will require 'incredible efforts' to repay its debts and may not be able to do so in full."

 

There are more details from these full stories:

http://www.reuters.com/article/idUSTRE64C5NJ20100514

http://www.bloomberg.com/apps/news?pid=20601100&sid=aA1RHpFPLyI4

 

THANKS! Terry in Ohio

[financialgrl]

When I began planning my upcoming cruise the euro was about $1.48 and the pound was about $1.65. I will be on a cruise the end of the month beginning in Barcelona, ending in Venice and stopping in London for a few days going home. In Barcelona and London I have confirmed reservations with a rate per night which means the falling euro/pound will make it a little cheaper than expected.

 

In Venice I booked a nonrefundable room because it was a pretty good deal back when other hotels were much higher. That one is paid in full but I noticed the other day, the room rates per night are now higher now that the euro has fallen so that would have been a wash. Overall I am thinking that the fluctuations in currencies may mean the cost of this vacation is a little less than planned which is always a good thing.