The European currency rose as high as $1.3105 in afternoon trading in Europe, breaking the previous record of $1.3074 set last Thursday. I like to revise my forecast to $ 1.35 within a year.

Oh, the answer to the international beer drinking question! Everyone who had a euro in their possession bought them the beer, because value of the euro decreased against the dollar.

THis is nuts. I never thought it would be this bad. I remember I was in Spain day one of the Euro, New Years Eve/day. There was a huge five story ballon with the euro symbol being bounced around in Puerta Del Sol. Some local Spainards chased the ballon and destroyed it and the crowd cheered beyond belief because they hated the fact of a common currency.........there not hating it anymore!!!
George W has to do something about this. It's great for American exports but for the poor American traveller ......it's tough!

The euro rose to $1.3329, and then fell to $1.3258 against the US dollar. The international traders remain negative amid growing concern in the gap in the U.S. trade deficit, the broadest measure of trade in goods and services, as well as the shortfall in the federal budget. Bush isn't all to blame for the federal budget, since Congress has to approve federal spending. But each budget starts with the Oval Office, and the president has veto power over appropriations. Also, a significant portion of the higher consumer spending went to purchase imported products resulting in a negative trade deficit.

Can I change my prediction to $1.40!

I don't think anyone in the "Eurozone", Spaniards or otherwise, are celebrating this situation. It's very bad for European Business. Bear in mind that many countries (China, for instance) peg their currencies to the dollar (the US being their major export market), so the Euro is rising against all of them, and European goods are becoming uncompetitive. There is some talk of the Euro banks intervening, but it would have to be on a massive scale to have any real effect. So yes, $1.40, no problem!

Since this thread started the US Dollar got WORSE against the Euro and now has returned to better than what it was at the first posting above.

Posted 5/25/2005 11:15 PM Updated 5/26/2005 9:19 AM
As U.S. dollar gains strength, Paris beckons
By Noelle Knox, USA TODAY

PARIS — Many hotels here are full this weekend, and summer reservations are picking up, thanks partly to a 7% rise in the value of the U.S. dollar this year that has made traveling to Europe more affordable for Americans.
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Read the rest of the article HERE

MM thank you for the update on the $ vs the E I will watch that closley as we are planning a trip next March or April. I will post updates as I see them.

Time for an update on the EURO.As of today, the exchange is at 1.227 USD per EURO.Down about four cents since MM's last update.It has been decreasing since the French vote this past weekend.Good news for americans travelling to Spain!

And today, 1.00 Euro = $1.19 . Before you know it it'll be equal once again. It's on its way!

Saludos, MadridMan

This is by far the best news I've had all week!! Makes me a very happy camper... especially since I'll be moving to Granada in 2 months! Harrah!!!

I have not follow the exchange rate since I have returned from Spain in February/March of this year. Now I going back this coming September/October, this is great news for me and hopefully it will drop further.

Bill