Appreciation of dollar.
Dec 20, 2011 | 7:58 pm
#16
Join Date: Apr 2005
Location: ORD, MKE
Programs: UA, Hyatt and regular member of everything else
Posts: 1,531
Dec 20, 2011 | 8:24 pm
#19
Original Poster
Suspended
Join Date: Jan 2002
Posts: 22,778
US$ is overvalued too. The recent appreciation is a bubble. What do you mean "thought to be pegged"?
Dec 20, 2011 | 8:29 pm
#20
FlyerTalk Evangelist
Join Date: Sep 2003
Location: HH Diamond, Marriott, IHG, Hyatt something
Posts: 34,507
Dec 20, 2011 | 9:24 pm
#22
Suspended
Join Date: Jan 2010
Location: Calgary, Alberta
Programs: Hyatt Diamond, Fairmont Platinum, Aeroplan Diamond, HHonors Gold, SPG Gold
Posts: 18,686
Dec 20, 2011 | 10:06 pm
#23
Original Poster
Suspended
Join Date: Jan 2002
Posts: 22,778
Dec 20, 2011 | 10:25 pm
#24
Suspended
Join Date: Jan 2010
Location: Calgary, Alberta
Programs: Hyatt Diamond, Fairmont Platinum, Aeroplan Diamond, HHonors Gold, SPG Gold
Posts: 18,686
Dec 20, 2011 | 10:27 pm
#25
A FlyerTalk Posting Legend
Join Date: Jul 1999
Location: Over the Bay Bridge, CA
Programs: Jumbo mas
Posts: 42,577
I take students to Chile twice per year. During last year's January trip, the exchange rate was reaching a 5-year low ($1=475CLP) and it sure made for a tight budget. Today, the rate ($1=516CLP) is terrific for us and will give us some extra money to spend. So, we're happy!
Dec 20, 2011 | 10:39 pm
#26
Original Poster
Suspended
Join Date: Jan 2002
Posts: 22,778
The general trend has been downward against major currencies during the last decade. Euro is about 50% higher despite its recent troubles, JPY has appreciated about 40%, and has fallen against the Swiss Franc, the Scandivaian currencies, CZK, the Chinese Yuan, SGD, MYR etc., but has held steady against the Pound. It has rise against the Indian Rupee and other currencies in the region.
Dec 21, 2011 | 5:29 am
#27
Join Date: Sep 2003
Location: Terra Australis Cognita
Posts: 5,353
http://goldprice.org/gold-price-hist...ear_gold_price
Although obviously one man's "independent" is another man's "speculative investment bubble"...
Dec 21, 2011 | 5:57 am
#28
Join Date: Nov 2006
Location: MEL
Programs: DL, QF, QR Silver, Bonvoy Lifetime Gold
Posts: 7,315
The weaker favors European exports (because European products are now cheaper on the US market). Conversely, US products are now more expensive for Europeans. In this context, normally I'd say that EU wins (they get to sell more, therefore produce more, therefore have more people employed), but the fact is that the US economy being weaker, there is less demand for EU (or any) products.
Dec 21, 2011 | 7:30 am
#30
FlyerTalk Evangelist
Join Date: Dec 2000
Location: south of WAS DC
Posts: 10,131
as i said, when introduced in 1999, the euro was pegged at about $1.00 us. and allowed to float free. after a short run to about $1.10per, the € dropped as low as $0.85 in '02.
i owned a business that purchased all raw materials in europe. about 3 years ago, i closed the door, as profit was impossible with the expensive euro.
as an aside, somewhere in the 80's(i think) the british pound almost reached parity with the us dollar. pound was under $1.05us.
wrong. dollar bought 0.77 in 1985.
i owned a business that purchased all raw materials in europe. about 3 years ago, i closed the door, as profit was impossible with the expensive euro.
as an aside, somewhere in the 80's(i think) the british pound almost reached parity with the us dollar. pound was under $1.05us.
wrong. dollar bought 0.77 in 1985.
Last edited by slawecki; Dec 21, 2011 at 9:29 am