Hello! (Great forum here)

I'm an American living in America and I have about 1000 in Euro's

I don't plan on traveling to Europe again in the future so I want to convert them to USD

But with the extremely weak dollar, is it best to convert the Euro's now or when the dollar is stronger?

Thanks

This post has been edited by LimYoo: Jun 29 2008, 03:02 PM

The things to consider are these:- Do you need the money right now? Could it be invested if you do change back to dollars, thus bringing in some return? If you decide to leave it until the dollar has strengthened against the Euro, will there be a right time? In other words how long will you have to wait, it could even be that as the dollar strengthens against other currencies, so does the Euro.

Perhaps set yourself a time limit, and make the exchange at the end of that time, whatever happens.

Thanks for the reply

Bottom line, it would be better for me to convert when the Euro is stronger than the dollar because then I'll receive more back in dollars. Correct?

That`s correct. The stronger the Euro is against the dollar the better for you when you come to exchange your Euros for dollars.

Ideally you want the dollar to drop even more. But, of course, that brings other problems for the economy, non related to exchanges though.

Thanks

Do you think the dollar will drop even further in the years to come or is this the peak?

Ah well, that`s the $64,000 question.

The USD will get weaker in near future for various reasons,the slow down in economy and subprime crisis as well as increasing rise in commodities prices and cost drive the USD to new bottoms,in other words only when you see the FED starting to raise interest there is a chance USD will get stronger,till that time comes which doesnt seem to be near with the fear of recession coming ahead the fed reluctant of raising the interest despite inflation fears on other hand,while other economies raise the interest on their local currencies and imply they are worried from inflation more than slow down as is the case in US,till the interest on USD will not rise and GAS and OIL prices keep on the rise USD will continue losing its value and be further less attractive for foriegn investors.you better off keeping your euros for time being as the predictions are for the Euro to hit $1.70usd in near future.

Needless to say there are better routes to get better return than sticking to Euro/USD right now but as small holder you better off keeping your Euros till you see or hear on plan to raise interest in USA,even then it will be dependant on other factors but as long as this is NOT happening,USD has no chance getting stronger in near future.

This post has been edited by GSB: Jul 11 2008, 08:39 AM

I think the dollar will become weaker and the nearest target against the euro is $1.60 in August and $1.70 in September.

Thank you so much for the thorough reply GSB. I will keep my eye out for interest rate increases then.

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