The dollar drops and droops

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AMSTERDAM (Reuters) – The U.S. dollar’s value is dropping so fast against the euro that small currency outlets in Amsterdam are turning away tourists seeking to sell their dollars for local money while on vacation in the Netherlands.

“Our dollar is worth maybe zero over here,” said Mary Kelly, an American tourist from Indianapolis, Indiana, in front of the Anne Frank house. “It’s hard to find a place to exchange. We have to go downtown, to the central station or post office.”

That’s because the smaller currency exchanges — despite buy/sell spreads that make it easier for them to make money by exchanging small amounts of currency — don’t want to be caught holding dollars that could be worth less by the time they can sell them.

The dollar hovered near record lows on Monday, with one euro worth around $1.58 versus $1.47 a month ago.

(Link: reuters.com)

1 Comment »

  1. It’s all about cycles. The Euro goes up and sometime again it will go down.

    It may not happen on an election year in the US, but when the demise of the Dollar becomes the main news on every news report, and shows up on the front pages of newspapers and magazines, then it will be time to bet on the Dollar’s come back.

    Currencies are economic tools. And Europe’s export oriented business can’t afford a strong Euro for too long.

    Being early in an election year in the US the Euro is likely to stay strong for a few more months ( The US Consumer is not doing it so more exports and less import is the way to pump the US Economy).

    By the end of the summer, after the European Tourism industry cries FOUL!, it will be time again to buy the Dollar.

    It happen before and it will happen again.

    Comment by Alejandro — March 30, 2008 @ 4:08 pm

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