Euro exchange rate

[Emma1]

The euro rate seems to be going back up - looked at different website forecasts. Have a med cruise booked for July 2011 - do you think we should exchange some dollars now? It is expensive as it is and if euro rates go back up we will have less spending money. Any thougths?

[We-R-Off]

It's a gamble always with foreign currency. The $ is weak against all currencies but the question is whether the Euro will get even stronger against the $. Even though the Euro isn't as strong as it was, the problem is the US economy and the weak $.

 

It's possible that getting close to Christmas the $ will hold it's own but if the economy doesn't improve neither will the $.

[5020trip]

Interesting topic. We are headed to Europe next summer as well and I was thinking along the same lines. Most forecasts I've seen have the Euro modestly declining v. the US Dollar in the short term (next few months) and then rising in the Spring. HSBC just published a new short term forecast for the Euro of $1.25 (it was $1.32 today). EuroZone weakness is for now considered worse than US weakness, I guess. Thanks, Ireland!

 

My thinking is that there is no rush to lock in today's exchange rate. We are about to put a deposit on a some Euro-denominated accomodations and I have no issue doing so at $1.32/Euro. If we hit $1.20 again, maybe I'll increase the deposit a bit and buy a few Euros for spending money.

 

Any other views out there?

[diane.in.ny]

If Euros are bought in the U.S. there are usually significant fees that go along with the purchase.

 

I get Euros at an ATM in Europe. My credit union charges a 1% foreign exchange fee. That's it.

 

For me, the arithmetic says paying fees to buy Euros in the U.S. will be more than small changes in the Euro, over the next couple of months, might cost me.

 

I think everyone has to do their own arithmetic based upon how and where they get their Euros

[Keith1010]

i agree with the previous post.

 

I would get my ATM in Europe.

 

I would wait and not exchange money now. No one can predict what will happen.

 

Also, we get an excellent exchange rate on all of our charges outside the USA using a Capital One Credit Card. Unlike most credit cards they do not tack on those extra foreign transaction fees.

 

Keith

[RCIGUY]

I have a couple of questions for Keith1010, or anyone else who might have the answers.

 

We are booked on the Equinox for a november 2011 TA. We currently hold a Capital One MC, but are totally ignorant as to how we accomplish foreign currency purchases without incurring extra charges.

 

Is using the Capital One MC a prudent way to accomplish this without incurring a lot of fees? I know they don't currently charge a foreign transaction fee, but do you get charged a cash advance fee by Capital One for using their card to purchase currency?

 

Would an ATM card be better (our Credit Union does not allow use of its ATM card in Italy), and if so can this be accomplished through Capital One?

 

I've researched these questions at the Capital One site, but haven't found definitive answers.

 

Any suggestions you could provide would be appreciated.

 

Thanks, RCIGUY

[diane.in.ny]

I don't have a Capital One card. But from what I have read, if you CHARGE a purchase on your card you will NOT be charged a foreign exchange fee. So, for instance, if you buy something that cost 10 Euros and the exchange rate is $1.50 to 1 Euro, your credit card bill will show a charge of $15.

 

Getting cash is a totally different story. Not only will you probably be charged a cash advance fee, but you will probably also end up paying interest on that advance.

 

My suggestion is to call Capital One and speak with someone.

[In Retirement]

The question of what sort of cash to carry to Europe is complex and I certainly don't have all of the answers from my last trip. However I can suggest:

(1) Credit cards DO charge a fee for purchases in which your USD are converted into another currency. As of my last discussion with Capital One, their VISA card does not charge a currency conversion charge. My other cards charge 2% and 3%. Whatever the conversion they add this fee -- this is on charges.

(2) ATMs are very interesting. This is not using a credit card to get a cash advance. If you do this, you may be paying 20%+ from the moment the cash is in your hands -- don't do it! My last solution was to open a separate "travel account" at Capital One and to "fund" it over my needs for a specific trip and obtain debit cards for the account (Capital One debit cards are Master Card). My experience is that even bank ATMs will charge a fee for each withdrawal.

(3) For credit cards have a numeric pin assigned. For debit cards have a numeric pin assigned.

When we travel to Europe, we consider what money we will need in the first week and try to travel with most of it. We are now less than five months out from our next trip and already know that we will need USDs for a tour in Russia and will determine what we need for other tours and apartment rent (euros). Most places we have or will go I have been warned about pickpockets. Prepare by buying under-the-clothes money pouches that are worn around the neck with cords that include steel wire (no kidding). Will be watching the USD/euro rate and checking with the couple of banks I do business with. Whatever you do, you won't be able to predict what would be the best move (except under no circumstances become confused and draw out currency using a credit card as you will absolutely regret it).

[tiyana4]

I agree with In Retirement....very complex. ATM's may NOT be the way to go. I found this out the hard way on a recent trip to Europe. Depending on your bank (Wells Fargo in my case) charges ridiculous fees to withdraw money in foreign currency abroad. However, my saving grace was HSBC which carries a 1% foreign transaction fee vs. 3% with AMEX.

 

I wouldn't rush out to get any euros at this time. Wait until the holidays are over and see if the dollar stabilizes. This happened last year and the USD-euro rate rose significantly in the spring, only to drop back down again later. I will say that even with the shipping fees ($10-12 if I recall correctly), Travelex had better exchange rates than the ship or the airport.

[diane.in.ny]

Most places we have or will go I have been warned about pickpockets. Prepare by buying under-the-clothes money pouches that are worn around the neck with cords that include steel wire (no kidding).

 

This is a good idea but my husband and I prefer the Hidden Pocket by Eagle Creek. It doesn't show because we carefully position it behind a pocket. And it is easy to access.

 

 

 

 

http://www.travelsnippetsandmore.com/2008/09/review-eagle-creek-hidden-pocket_3047.html

[wantocruisemore]

We're also trying to decide the best way for our trip in July, 2011. Since we will need to pay our airport pickup and our apartment as soon as we get there, we will likely want to arrive in Rome with some Euros already.

 

Also, we have private excursions booked at almost everywhere. While they are great prices when you talk about for 9 people that adds up to more than allowed to withdraw from ATM each day.

 

What is the best way to handle that?

[6rugrats]

Also, we have private excursions booked at almost everywhere. While they are great prices when you talk about for 9 people that adds up to more than allowed to withdraw from ATM each day.

 

What is the best way to handle that?

You can order Euros in advance, though the rate is usually better using an ATM when you get there.

 

Try here:

 

http://www.travelex.com/

 

You may be interested in this option:

http://www.us.travelex.com/US/Products/Cash-Passport/

[diane.in.ny]

Also, we have private excursions booked at almost everywhere. While they are great prices when you talk about for 9 people that adds up to more than allowed to withdraw from ATM each day.

 

What is the best way to handle that?

We just returned from traveling with a group and one of the group members had a Visa card that was preloaded with Euros. She was able to use it as both a credit card and an ATM card.

 

I'd be happy to try and get some details if you think this would be helpful to you.

[wantocruisemore]

We just returned from traveling with a group and one of the group members had a Visa card that was preloaded with Euros. She was able to use it as both a credit card and an ATM card.

 

I'd be happy to try and get some details if you think this would be helpful to you.

 

 

Thanks, any advice would be appreciated.

 

We already have a Bank of America debit card that doubles as a charge card but it all keyed into our checking account. I figured we would talk to them ahead of time to try to increase our daily withdrawal limit, and make sure we have plenty of cash in the account to cover everything.

 

I will also research Travelex and start monitoring exchange rates. I had also always heard early spring is a good time to buy.

 

It's been awhile since I was in Europe and I was on tours that handled most everything with the advance payment. Since the whole family is looking to me to plan everything, I don't want to have all the tours planned out there without also having euros in hand.