The Strong Dollar is Good for US Travelers

[Pauline]

From xe.com today (March 11, 2015):

1 Euro = $1.06
1 GBP (British Pound) = $1.50
1 CHF (Swiss Franc) = $0.99

The GBP dropped lower for a few months a couple of years ago, but since we have been here (from May 2010) it has moved between $1.45 and $1.65, with a short trip up to $1.70.

And the Euro! Since it was introduced it has been lower, but it has also been much, much higher. $1.06 for a Euro is good news for Europe travelers.

A short history of the Euro
1999 (when the Euro was introduced) - highest rate $1.17
2000 - lowest rate $0.82
2004 - 2006 - high was $1.36
2008 - high was $1.59
2011 - high was $1.47.
2014 - high was $1.39 and it has gone down since then
2015 - has gone from a high of $1.20 and is now at $1.06

Impact on US Travelers
US travelers will do best to book with owners/agencies with prices in Euro.

Our April vacation rental is priced in GBP and I asked for a discount because the Euro had already fallen dramatically (they gave me a 10% discount).

I have our July Swiss vacation rental on hold, but Interhome in the US sets prices in dollars and they have not reduced them as the Euro and CHF have fallen, so I could get a 10% discount just by cancelling my reservation on the US site and booking on the Swiss site (interhome.ch) - which I am going to do.

But we are going to regret bringing home all that Euro cash after the last trip!

 

[Chris]

Thanks for the history! I was wondering about this but too lazy to look it up.

 

[Anne]

Still $1.35 Cdn
(We just try not to think about it...lol)

 

[Pauline]

Yes, the Canadian dollar is not doing well against the USD or Euro. This is the lowest I have seen it. Canada did so well compared to the US during past few years - I am surprised by this recent turn of events.

 

[Chris]

Hmm. Maybe later this year would be a good time for that trip to Quebec I've always wanted to do...

 

[querop]

Good for them.

 

[Pauline]

Interesting article in the New York Times today by Paul Krugman explaining why the strong dollar is not good for the US.

 

[Roz]

Here is the link to Krugman's article: Strength is Weakness.

 

[Lisa in Ottawa]

Low Canadian dollar depressing for travellers for sure. It just keeps dropping. No good reason. It's supposed to be good for manufacturing and exports but I don't think it will make a difference.