The dollar drops and drops

[HoneySuckle]

And we have booked our flights to Europe[]

Everytime I hear the latest low on the dollar I cringe.

Thankfully, we paid for our accommodations in US (owners live in the States), and booked our flights before they get too expensive, but for shopping, eating, moving around in England, France and Italy that is scaring the crap out of me.

What IF the Euro reaches a mighty high of 2/1?

Is there a way to purchase Euros and pounds black market?  Okay, that sounds illegal but honestly, I hear someone talking about this and thought, why not?

[cannon_fodder]

Funny you should post this today.  The dollar was actually up significantly yesterday after the Federal funds rate change and a subsequent drop in gold.  It gain .8% yesterday and .6% today and commodities continue to fall.
(dollar index as a whole, not just against the Euro)

http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aW6kHQpD59dA

For you, that means you save 3 cents on each Euro:
1.5417 today.

Certainly not GOOD news for you.  But great news for all the manufacturers, tourist attractions, and laborers in the United States.  I don't think we will see a 2:1 Dollar/Euro since the EU, China, nor the Arab states want to see that happen. We will probably see 2:1 again with the Pound.

Also as an interesting note, our current ration with the Euro is the inverse of the ratio at the Euro's low.  Which saw US Manufacturers pissed and a severe drop in Tourism on this side of the pond (though we could and did flock there cheap).  I've actually pulled much of my investments back to dollars for several reasons (FDIC and lack of faith in foreign institutions as well as thinking the dollar has bottomed out).

Floating currencies are a good thing, they provide parody in trading.  But for the time being, it sucks for you.

[Conan71]

quote:Originally posted by HoneySuckle

And we have booked our flights to Europe[]

Everytime I hear the latest low on the dollar I cringe.

Thankfully, we paid for our accommodations in US (owners live in the States), and booked our flights before they get too expensive, but for shopping, eating, moving around in England, France and Italy that is scaring the crap out of me.

What IF the Euro reaches a mighty high of 2/1?

Is there a way to purchase Euros and pounds black market?  Okay, that sounds illegal but honestly, I hear someone talking about this and thought, why not?

Pounds Sterling have never been a bargain and everything seems to cost double over there.  I think the only thing that happens when you try to exchange Euros and Pounds on the black market is someone sticks a gun to your temple and makes off with your wallet.

You'd probably have to be talking hundreds of thousands and deal with some seriously scary people to play on the black market exchange.

[cannon_fodder]

Really there would be no advantage.  The exchange rate is not set by the government or even handled by them, it is an open market transaction.  So why would a black market exist to sell currency?    And if it did, why would they sell it to you at a discount?

If you think your dollars are over valued still, go buy Euros (or Pounds, or Australian Dollars, or Yen...).  You are free to do so, no black market needed.  Well, unless you are in China or Cuba where some currencies are illegal and/or officially pegged by the State.  Same with a good handful of developing countries that don't let their currency float.

But in Europe you will find no Black Market.

[sauerkraut]

yeah, it's pretty bad. Oil is sky high due to the dollar. I understand that the price of oil and gold is still the same as it was in 1960. In 1960 a ounce of gold would buy 10 barrels of oil.... Today an ounce of gold still will buy 10 barrels of oil. What has changed to make gasoline prices so high? taxes and gov't regulations.

[Samalicious]

Don't let this ruin your trip, just play as smart as you can. In my experience you will get the best exchange rate on Euros if you wait until you get there and get them at an ATM. Make sure your credit card doesn't charge you for doing so, some do.
Pounds have been nearly 2 to 1 for some time  and I agree with Conan 71 that prices are double in the UK compared to here as well. Just don't use the money exchange booths on the streets, they're the highest. Buses and trains are fairly cheap, you can work out the meals, and you already have your accomodations.

[HoneySuckle]

Someone on a travel forum recommended trying to get foreign currency via the black market avenue, and silly me, I took it seriously.

Inteller will have a field day on this one[]

We'll use ATM and try to figure out how to eat local and not break the bank!

[cks511]

It might take Inteller a little while to get to this as he is enamored with the breast  chest ahhh frontal adornments pic.....LOL