The Rise & Fall of the Euro

[Marco D.]

I never thought I would see the day...
1 Euro = 1 USD

[Andy Velebil]

I never thought I would see the day...
1 Euro = 1 USD

Same. Question is, will it go lower and if so how much lower?

[Glenn E.]

I never thought I would see the day...
1 Euro = 1 USD

Same. Question is, will it go lower and if so how much lower?

Yeah it's very strange to see it this low again. IIRC it was lower when first created, wasn't it?

I've seen some projections that say if the Russian invasion of Ukraine continues for the summer, the Euro could go as low as 0.90.

[Glenn E.]

This article isn't quite as doom & gloom as the one I read that said it could reach 0.90, but it's still saying 0.96 or 0.97.

https://www.cnn.com/2022/07/11/investin ... lar-parity

[Roy Hersh]

I was not following the Euro back in the 1990's when the USD was below par but today it is1

I Euro=

0.99711559 US Dollars

1 USD = 1.00289 EUR.

Last updated Aug 24, 2022, 22:09 UTC

[Glenn E.]

It was as low as 0.9943 on Monday, which is as low as it's been since the 1990s.

[Roy Hersh]

Without looking at Google, I have no idea when the Euro actually was launched. And I only checked the Euro for one of my clients yesterday, while we were on the phone discussing a pvt tour for 2023. That being said, have any of you ever invested in Euros as a way to hedge future travels? I have only done that a few times in the past, trading USD for 1000 Euros. But given the Euro will eventually strengthen, is now a time where investors would go all in?

I remember my former friends who owned WINEWORTH in their heyday, and they would go in for $100,000. at a pop when the Euro dropped below 1.20 which for the better part of a decade (past) rarely happened. They paid all their bills in PT and Spain in Euros, so it made a lot of sense to use a hedging strategy like that.

But for LT profits, right now may be a good time to invest in Euros. Or wait and see, as speculation here in the EU is that there is a serious financial crisis coming by the end of October. But most of this is based on predictions of the impending energy crunch due to RU raising their rates this coming autumn and winter.

[Eric Ifune]

I was living in Italy when the Euro was instituted. It was about 1.5 euro/dollar. I bought a lot of stuff then, not just wine!

[Glenn E.]

But for LT profits, right now may be a good time to invest in Euros. Or wait and see, as speculation here in the EU is that there is a serious financial crisis coming by the end of October. But most of this is based on predictions of the impending energy crunch due to RU raising their rates this coming autumn and winter.

Personally I think it's probably safer to wait until the Ukraine situation is resolved, or at the very least has gone on long enough that Europe has more fully disentangled itself from dependence on Russian energy. There will definitely be a time to buy Euros as an investment... I just don't think we're there yet.

[Eric Menchen]

Now if you just want to get some Euros to travel and then spend them, in general you can use the vacation exception and not worry about taxes. But if you are exchanging money as an investment, or even if you intend to do it for vacation purposes but you exceed thresholds ($200 per transaction), you have a taxable event, and this will probably be at ordinary income rates, not capital gains rates.
https://www.johnschachter.com/internati ... -write-off

[Eric Menchen]

Just got back from a trip and I'm balancing the checkbook. Made a €250 withdrawal, showed up as $255.23 - $3 fee rebate my bank reimburses, resulting in $1.00892 to the €.

[Andy Velebil]

Just got back from a trip and I'm balancing the checkbook. Made a €250 withdrawal, showed up as $255.23 - $3 fee rebate my bank reimburses, resulting in $1.00892 to the €.

Let’s hope it stays that way for another couple months.

[Glenn E.]

It was briefly below parity last week... Kari deals with ForEx for her work so generally has a pretty good idea of where it sits.

[Roy Hersh]

I have a feeling that the Euro is going to take a dip in the coming weeks. We shall see, but at least for wine purchasing on the European side of the pond, now is a good time to be buying Port with USD!

[Glenn E.]

I do not recall the date, though it was fairly recent, but the Euro was as low as 0.96 on the same day that the Pound briefly hit 1.03.

Crazy times.

[Eric Menchen]

I'm actually thinking about going to Japan next year, as the yen has fallen even more than the euro against the US$.

currency.jpg (72.31 KiB) Viewed 3735 times

[Glenn E.]

Sent a wire to Portugal yesterday and the rate was 1.0007 so almost parity.

Sent 2 more wires today and the rate was 0.9995.

These are the rates that my bank gave me, so I have to assume that the base rate is even lower in both cases. (It's usually about a 2 point difference.) The Euro is officially worth less than the USD again!

[Andy Velebil]

It was nice for the first time in 15 years of going to PT that the Euro was worth less than the dollar. It made buying things a whole lot cheaper and in some cases quite the bargain compared to past years where the dollar was worth 24% less.