Tuesday, November 09, 2004

Euro – US Dollar Plight

“The exchange rate Euro VS US Dollar is one of the most watched financial indicators in the world. Thousands of businesses and millions of individuals need to be up to date on the fluctuations of the currency pair’s value”. --Quote from Forex-Guide

Here is the conversion as of today at Oanda.com:

1 US Dollar = 0.77429 Euro

1 Euro (EUR) = 1.29150 US Dollar (USD)

The USD continues to slide against the Euro. Speculations by economic analysts are quite ambiguous due to the numerous and variable reasons one can scrape behind the volatile mood of the market (and politics). But a somewhat solid theory (?) was said that the USD has yet to depreciate mainly because of the lack of a clear catalyst to reverse its decline. You can guess, but it has something to do with the country’s deficit and national debt amongst others, which I heard is US$ 80,000 per US citizen!? Gurus say that the Euro appears poised to move towards 1.30 - 1.33 in the next few months against the US Dollar.

The mood here in Europe is however haphazard, like a two faced puppet drowned in mournful jubilance. With Euro purchase power you feel sheltered from the savvy strength of the currency. On the other hand, the US Dollar’s drop has tremendously affected the market’s disposition. Negatively.

Analysts say that the European market will be adequate only if the US Dollar will decline languidly across a long period of time. If it will dramatically change its course, for worse, then difficulties will arise quickly in the horizon.

Oh well...

My American friend here in Utrecht is going to New York this weekend and if I may quote her (I hope she doesn’t mind because she knows this blog!), “I'm going to try to shop a bit and take advantage of the weak dollar.”

Hmm, maybe I should go to the US too...


  1. It's a good time for europeans to visit the U.S. and shop because of the strong euro. It was $1.25 to a euro when we were in europe. No wonder, merchants and hawkers didn't accept the dollar most of the time.

  2. In the UK, travel agencies are promoting New York as THE shopping destination. I don't blame them. A few days ago, I was booking for hotel rooms in Amsterdam thru an NL site, only to find out that a US site is quoting a much lesser price in US$ pa. Same thing happened when I ordered for a eurorail pass two years ago. The London agency gave me a quote almost 2X as much so I ended up ordering my tickets from a U.S. Agency! Strange eh.

  3. Christmas is near, you may want to consider buying a gift for me...hehe...

  4. iskolar, am thinking of going there in the usa next year for a cross border roadtrip canada-usa :-)

    sari, you got that right. in fact thats a brewing problem because the EU's competitiveness is at risk, thus hurting the economy long term. at work, i prefer to deal with US suppliers because i get it cheap, much more if I sell it in Euros!

    manang, anong gusto mo? hehe!


Hi, thank you for taking time.

Link Within

Related Posts with Thumbnails