Dollar Vs. Euro 8/16/07

[hotrod2448]

Hey guys, I'm sure at lot of you are much more tuned into what is going on with the world economy than I am (or would be sifting through financial web sites for 15 minutes) either through work or personal investments.

So, here is my question:

Given what looks to me at least to be a continuing downward spiral of the dollar against the euro, would I be better off to exchange my money now for my September ED? Perhaps exchange more than I'm going to need and possibly make a little trading it back later if the dollar continues to fall? What do you guys think the odds of this are?

I know I'm probably a little later getting to this than I really should be. I'm not looking to actually make an appreciable amount money but, if I can do something to get back a little that I'm loosing on the exchange why not.

Thanks.

[am_ver]

as per the current trend and one of the financial mags, you would be better off keeping your money in euro's (valid till atleast the end of the year). How would you get euro's while in the US?

[hotrod2448]

as per the current trend and one of the financial mags, you would be better off keeping your money in euro's (valid till atleast the end of the year). How would you get euro's while in the US?

Not quite sure yet, just started looking into this. I know I can do it through my bank but, I believe they charge a fee.

I was originally planning on using a credit card mostly and getting pocket money out a Duetsche (Sp?) Bank ATM. They have an agreement with BofA.

[Hound Passer]

You are going to be charged an exchange fee no matter where you get your euros unless you get them from a European ATM (that is the smart money). I would not sweat over the dollar to euro values unless you plan on spending tens of thousands of dollars...in cash. Otherwise the daily variances of the dollar dropping or rising a nickel or dime are not going to inflict much more pain on you.

One thing you should to is call up your bank and CC company and tell them when you will be in Europe and make sure your cards are activated for use in Europe.

[hotrod2448]

You are going to be charged an exchange fee no matter where you get your euros unless you get them from a European ATM (that is the smart money). I would not sweat over the dollar to euro values unless you plan on spending tens of thousands of dollars...in cash. Otherwise the daily variances of the dollar dropping or rising a nickel or dime are not going to inflict much more pain on you.

One thing you should to is call up your bank and CC company and tell them when you will be in Europe and make sure your cards are activated for use in Europe.

Called the bank and CC company already.

I was figuring the ATM was the way to go.

[DCJAX]

Your theory is good, it's just that the risk/loss of sitting on cash plus the transaction fees will greatly outweigh the change in the exchange rate.

[beewang]

Don't waste your time on your misguided attempt to trying to hedge currency risk. Based on your proposal, if done successfully, the amount you saving will be immaterial before factor-in time value of money.

DON'T DO IT!!

Just my 2 cents worth,

beewang:bigpimp:

[hotrod2448]

Your theory is good, it's just that the risk/loss of sitting on cash plus the transaction fees will greatly outweigh the change in the exchange rate.

Don't waste your time on your misguided attempt to trying to hedge currency risk. Based on your proposal, if done successfully, the amount you saving will be immaterial before factor-in time value of money.

DON'T DO IT!!

Just my 2 cents worth,

beewang:bigpimp:

That's what I though but, I figured I'd ask and look dumb anyway.:fruit:

[rich8566]

Hey guys, I'm sure at lot of you are much more tuned into what is going on with the world economy than I am (or would be sifting through financial web sites for 15 minutes) either through work or personal investments.

So, here is my question:

Given what looks to me at least to be a continuing downward spiral of the dollar against the euro, would I be better off to exchange my money now for my September ED? Perhaps exchange more than I'm going to need and possibly make a little trading it back later if the dollar continues to fall? What do you guys think the odds of this are?

I know I'm probably a little later getting to this than I really should be. I'm not looking to actually make an appreciable amount money but, if I can do something to get back a little that I'm loosing on the exchange why not.

Thanks.

A wise man once said, don't bet on short term swings in interest rates. The same thing applies to currency fluctuations. Go with the flow and don't lock in now. (Note that this is not to be construed as investment advice and past performance is no guarantee of future performance)...

[2nynbak]

Called the bank and CC company already.

I was figuring the ATM was the way to go.

HP is correct IMO, however I would check with your bank if they charge a set fee per Euro conversion plus a percentage or just the going rate. Most cards have increased these fees recently and they can be some obscure pricing aspects beyond what you might expect.

[AAS]

I would advise against buying EUROS in the US and then changing back excess when you get back for two reasons:
a. traveling with a lot of cash is not recommended, and
b. regardless of the fees and commisions, then is a different rate for buying Euros and selling Euros (only the banks benefit and you get screwed in the deal).

I would suggest that you just go with the best rate available at the time, a no-fee credit card (like CapOne) or cash from a no fee ATM (BofA has a relationship with Deutsche Bank: no fess, no surcharges, just the interbank exchange rate).

[azheat]

Here are my two cents: Exchange some $$ into Euros here in the States. How long are you staying in Europe for your ED? 1000 Euros per week should get you by- easy. American Express, Wells Fargo and Bank of America are good places to exchange your had earned money. Also, keep in mind that there are still a ton of shops and areas that won't accept ANY kind of credit cards. Cash rules! And if you are planning on using your Debit card in Europe, call your bank prior to leaving to Europe and let them know that you are planning on using the card overseas. Otherwise your bank will block your credit/debit card because of possible fraud and you will not be able to use it. Have fun picking up your car next month. Will do the same :)

[Nic3quik]

You are buying a 40-50k car and you are worried about this? Sorry to say, that should be the least of your worries! lol, just enjoy the trip regardless of the cost. Be wise with your money while over there and you will get way more enjoyment than pinching for ~100.

[Northcar]

Many overlook this, but one of the real bargains in bidding on Priceline.com is that you pay in U.S. dollars and you have in effect locked in at today's exchange rate. Munich, Salzburg and Vienna all have Marriot hotels that are tied in with Priceline and offer rates by bidding as low aas 65 dollars a night.

[Monksgirl322]

You're getting some good advice here. Personally, I wouldn't exchange any money, either here or in the States. Just use your ATM to pull out whatever cash you need for the day. There are ATMs available everywhere.

Also, Priceline can be a great tool. We use it every chance we get, and have only been disappointed once (in Copenhagen). You can save some serious money by paying in dollars, and get a good hotel room, too.

Have a great trip! :thumbup:

[Andrew*Debbie]

Given what looks to me at least to be a continuing downward spiral of the dollar against the euro, would I be better off to exchange my money now for my September ED?


:confused:

Have you looked at the recent exchange rate trends?

Euro is currently about $1.35. It was above $1.38 a month ago. In any case we are only talking about a few Euros on a $500 transaction.


I think you'd have to be plain crazy to carry thousands of Euros around. Just asking for it. I'll pay a few dollars extra against the risk of loosing all that cash.

[hotrod2448]

Yeah, I'm not really that concerned about it. It just happened to sound like a potentially good idea for about the length of time it took to start this thread. I pretty immediately regretted hitting the "submit new thread" button realizing that this really made no type of financial sense.

On another note,

Do you guys usually exchange at least some money before you leave so you can pay, cab fare and whatever else you might need to take care of before you find some place in Europe to exchange money?

[mcg-doc]

I recommend caring large amounts of gold. Preferably doubloons.
:bigpimp:

[mcg-doc]

Do you guys usually exchange at least some money before you leave so you can pay, cab fare and whatever else you might need to take care of before you find some place in Europe to exchange money?

Use the ATM machine in the airport!

[Andrew*Debbie]

Do you guys usually exchange at least some money before you leave so you can pay, cab fare and whatever else you might need to take care of before you find some place in Europe to exchange money?


When I go to the UK I usually carry about $60 US and a ticket for the Tubes.
ATM for the rest.

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I keep reading posts how you need cash in Germany, so I might get a few Euros here. Exchange rates in Atlanta are terrible. You can buy Euros mail order from AAA. Rate is still not good, but better then my local bank. Minimum order is $300.00

[mason]

I mean the motive is good but the amount you are going to use will not give you much impact on exchange rate. You get save $10 - $15 more?? Don't forget the time and cost you have to shop around banks (remember each bank handles it differently, some charges fee, some don't and some charges rip off rate).

[The BoatMan]

ATM's are all over the airports. You will not have a problem waiting until you are in Europe to exchange. If you are that worried bring over a couple hundred US as an emergency fund.

[redadair]

I used Travelex to purchase Euros about 1 month prior to leaving for our ED. It turned out that I made a small amount on the exchange because of the falling Dollar. They ship to your house for free if you purchase over $750 and I received the money in two days. I would use this service again.

http://www.travelex.com/us/

Hope this helps

Red

[yamilrx]

Called the bank and CC company already.

I was figuring the ATM was the way to go.


Very important to call CC. They have blocked up to 2 CC's while in Europe and buying expensive items back when Euro was lower than dollar.

[yamilrx]

I used Travelex to purchase Euros about 1 month prior to leaving for our ED. It turned out that I made a small amount on the exchange because of the falling Dollar. They ship to your house for free if you purchase over $750 and I received the money in two days. I would use this service again.

http://www.travelex.com/us/

Hope this helps

Red

How were the fees in comparison to a US bank or exchanging in Germany and paying the fees there.