will the us dollar continue to go slide in comparison with the euro?

Question

I´m an American in Spain and have been using travellers checks. I noticed that every time I exchange travel´s checks, that the dollar has gotten lower. Its amounting to be about 1 or 2 dollars lost per week. Should i cash in all my checks now and open up an account in euros ? I´m going to be here until june, do you think the dollar will possibly go up, or will it stay basically the same or will it continue to go down?

Answer 1

Best option would be to convert, if possible, sufficient dollar-denominated funds to euros in order to cover your expected euro-denominated expenses.

There is a currency risk, and it is likely that over the next five months the dollar will not get much stronger, although it's not guaranteed to slide (don't listen to goldybug up there - the Dollar and the Euro, despite being fiat currencies, are reliable and trusted around the world, and the spot price of gold is more volatile than the dollar).

Answer 2

Yes it will. If you understand classical economics, you know that both the US dollar and the Euro are worthless fiat currencies. Their apparent value is based on how fast their respective governments (and central banks) print new currency.

Do you have any idea what it is costing to keep all these troops in Iraq, as well as Afghanistan? I will tell you that as high as our taxes are, it is not nearly enough to pay the price.

When governments use un-backed currency (and today, they all do), they print more currency to cover the deficit created by insufficient tax revenues. This newly created currency lowers the perceived value of the currency already in circulation. It is the law of supply and demand. Increase the amount of money in circulation without increasing demand (more products and services) and the dollar will buy less.

Since the Europeans are not financing major military operations, they are probably not going to inflate the euro as fast as the dollar. Hence, the relative value ration will favor the Euro. Gold, which is real money, will continue to cost more of both inflated currencies.

Answer 3

The euro is everyday getting stronger and stronger, let's not forget the european union is formed by many many economic powers... some are not so powerful though... but yes... the euro will go higher and the us dollar, as long as some economic, foreign and war politics don't change is going to devaulate even more. Maybe you've noticed the feeling of... rejection.... europeans have for the US dollar... (consequence of those politics?) that has made them change all their operations to euros, they don't use the dollar as they used to, then the us dollar is losing popularity and value.

Yes, open an account in euros, don't lose your money!

Answer 4

First of all you shouldve bought your euros while you were still in US they punish the price a lot in europe. I would change all my dollars to euros right now and open an account in euros because yes the tendency is that the dollar will keep losing ground to the euro at leats for the next months.

Answer 5

No one knows the answer to your question, least of all the unsophisticated morons posting their opinions above. If you could predict currency moves, you'd soon be a billionaire, which I'm guessing no one here is.

Accept that you can't predict what will happen with the exchange rates, and make your decision as to whether to open a local account based on convenience, any costs of opening such an account, any tax consequences, etc.

Answer 6

To predict Short Term values of money you can look in the paper for "Options" of the money ... and in the short term it does appear that the options for money maturing soon is declining.