will the dollar keep falling?

From the senior economist and associate director at Ulster Bank today:

The dollar’s relentless advance vs. the euro has continued over the past 24 hours. Eur/USD traded sub $1.40 overnight – a 12 month low for the single currency against the greenback.
 
I'm going in 6 weeks myself and watch in dismay every morning as I see the dollar getting worse and worse (for me!). I was planning on using my credit card for most of my purchases and not bringing much cash with me (maybe 200 - 300 dollars for travel expenses, tipping, drinks, etc) but now I'm not sure if I should buy a decent amount of dollars asap! :confused:
 
No I always bring travellers cheques to the states. I use cash too tho but the bulk of my money will be tc.
 
hey bob, travellers cheques normally offer the worst exchange rates, just worth looking into, you're better off with your credit card, at least the fx wont be as bad and omre versatile
 
moondance said:
I'm going in 6 weeks myself and watch in dismay every morning as I see the dollar getting worse and worse (for me!). I was planning on using my credit card for most of my purchases and not bringing much cash with me (maybe 200 - 300 dollars for travel expenses, tipping, drinks, etc) but now I'm not sure if I should buy a decent amount of dollars asap! :confused:
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$1.42 per euro is still a very good rate historically.
If you had gone there in the year 2000 you would only have gotten $0.90 per euro. Enjoy!
 
I understand that but I'm going on a road trip so I think they are the safest option for me. My mate got $500 last week and the TC rate seemed pretty much inline with the cash rate, maybe an extra tenner commission or so. So I'm cool with that.
 
bamboozle said:
cause you'll pay atm charges every time u withdraw
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This is not generally true. Some ATMs may charge a local fee but many (most?) don't and you are just liable for the usual Cirrus/Maestro transaction fees, credit card cash advance fees (unless the account is preloaded with cash for withdrawals) and card based forex charges.These methods of obtaining cash outside the € zone are generally much more cost effective than using traveller's cheques.
 
Generally speaking you are better off depositing your money in your credit card account before you go but the disadvantage of this in your case is that exchange rates may go against you between now and your holiday.

Nobody can teel you for sure what way the rates will go but the trend is for the dollar to strengthen and in the medium to long term I believe that we will see parity once again. There are economists looking closely at how the Euro fares during this crises as many believe its survival could be in jeopardy, especially for the weaker European countries. We're not exactly seeing a lot of cooperation amongst the European countries right now, and while Ireland highlighted the indecision by making a unilateral decision to guarantee deposits I think it was the correct decision.

Downside of such a decision is that the guaranteed banks may now feel they can raise their risk profile because of the guarantees to get themselves out of the mess....picture the desperate gambler raising the stakes! It might have been more prudent to guarantee deposits up to and including that particular day; this would have kept the anti-competitive wolves from Ireland's door at least. Damn, I've gone off on a bit of a tangent here....sorry about that, but I guess it's all linked.

Anyway if I were travelling I would be buying dollars now....imo!

Enjoy.
 
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