USD to Euros
Jan 3, 2012, 7:00 am
#1
Original Poster
Join Date: May 2008
Location: NY
Programs: AA Gold; SPG: Gold:
Posts: 473
USD to Euros
I am pretty much a novice to international travel. Have done little. I am going to Italy in May/June 2012. Right now the euro seems to keep going down. My question is does it make sene to purchase the euros now and hold on to them in case they go up again? I realize they can also go down, so in a quandry. I would appreciate any suggestions.
Jan 3, 2012, 7:10 am
#2
Join Date: Apr 2011
Location: SMF
Programs: Hilton Diamond-Marriott Platinum-life
Posts: 1,015
I am pretty much a novice to international travel. Have done little. I am going to Italy in May/June 2012. Right now the euro seems to keep going down. My question is does it make sene to purchase the euros now and hold on to them in case they go up again? I realize they can also go down, so in a quandry. I would appreciate any suggestions.
Jan 3, 2012, 7:51 am
#3
Join Date: May 2007
Location: Chicago, IL
Programs: UA,AA,Marriott Platinum
Posts: 329
I travel to Europe every summer and the euro seems to be getting stronger during summertime.
Having stated that, Europe is struggling right now so you never know ....
You could hedge with half of your money in Euro linked CDs for 6 months. I typically try to avoid buying euros in the US beacuse exchange rates are not that competitve
Having stated that, Europe is struggling right now so you never know ....
You could hedge with half of your money in Euro linked CDs for 6 months. I typically try to avoid buying euros in the US beacuse exchange rates are not that competitve
Jan 3, 2012, 8:21 am
#4
FlyerTalk Evangelist
Join Date: Dec 2000
Location: south of WAS DC
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jyou gonna buy a hundered thousand euro? worry. you going to buy a couple thousand, get them ou t of an atm. etrade is another good source for card for machines. if you want to speculate in euro, buy futures, otherwise just buy what you need. if you plan on going back, save a couple hundred for next trip so you do not have to chase around upon arrival.
Jan 3, 2012, 9:48 am
#5
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Originally Posted by ontheway
My question is does it make sene to purchase the euros now and hold on to them in case they go up again? I realize they can also go down, so in a quandary.
Jan 3, 2012, 9:59 am
#7
Join Date: Jun 2004
Location: Earth
Programs: whatever it takes
Posts: 682
yeah...just get them out of an ATM...unless u plan on spending a lot of money...which might seem to indicate that u have a lot...so why worry over a "trifle" sum in exchange over a "Few cents" up/down.
And since Greece/Italy may exit Eurozone this year, and depreciate considerably.....keep ur dollars and see how the wind blows!
And congrats for finally escaping the orbit of ur home country!!
And since Greece/Italy may exit Eurozone this year, and depreciate considerably.....keep ur dollars and see how the wind blows!
And congrats for finally escaping the orbit of ur home country!!
Jan 3, 2012, 10:36 am
#8
In Memoriam
Join Date: Feb 2000
Location: Easton, CT, USA
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Unless you are paying for everything in cash including a weeks rental of a villa, the difference won't be huge enough (hopefully) to make a real difference. Buy what you need and don't worry about a few dollars difference based on the rate.
I also second everybody saying to just get them at an ATM when you get there, it's much easier. You can exchange some so you have money when you land, but after that just hit the ATM's.
I also second everybody saying to just get them at an ATM when you get there, it's much easier. You can exchange some so you have money when you land, but after that just hit the ATM's.
Jan 3, 2012, 1:35 pm
#10
Join Date: May 2007
Location: Chicago, IL
Programs: UA,AA,Marriott Platinum
Posts: 329
Currency traders everywhere would like to know the answer to your question, which is frankly unanswerable. If the European debt crisis is fixed in the next six months the value of the Euro will rise obviously. If you want to hedge your bets, do a dollar-cost-averaging trick, as if you were buying a mutual fund -- buy $200 worth of Euros every month for six months, no matter what the exchange rate is, and you'll get the average cost over time. But in all seriousness I'd just use the ATM at the airport when you arrive and stop worrying about trying to save $10 here or $15 there.
If the Euro goes up you at least bought half your stash at a cheaper price. If the Euro goes down everything's going to be cheaper in dollars so you will be happy since you budgeted according to today's rates.
Best of luck!
Jan 3, 2012, 8:37 pm
#12
Moderator: Manufactured Spending
Join Date: Jul 2011
Posts: 6,580
No one knows, and frankly it's not going to make much difference unless you spend a fortune while you're there. Just go there and withdraw money from the ATMs as you need it, using a no-fee debit card if you can get one.
Jan 4, 2012, 9:42 am
#13
Original Poster
Join Date: May 2008
Location: NY
Programs: AA Gold; SPG: Gold:
Posts: 473
I asked my bank (citibank) if there was a fee for purchasing euros and they said no. I am planning on taking about 2000 euros. My hotel gives a discount for cash and figured food, sightseeing and a few trinkets for the granddaughter who is traveling with me.
I get the hint though
and will take a few and use the local atm for the rest. Thanks for the advice.
I get the hint though
and will take a few and use the local atm for the rest. Thanks for the advice.
Jan 4, 2012, 4:08 pm
#14
Join Date: Mar 2005
Location: New York/Moscow
Programs: Aeroflot Gold, DL Silver, Marriott Gold, Global Entry, NEXUS
Posts: 243
Downsides to currency speculation
This issue constantly comes up for both our travel and consulting practices. For most travelers, we recommend just buying the currency overseas from an ATM when you need it.
The potential savings from any currency fluctuation can be lost by (1) the currency going the other direction, and (2) the potential to have the money either lost or stolen.
What most people are concerned with is knowing how much something will cost when they take the trip: i.e., will the hotel be $200 a night, or $240? You can prepay many things before you leave (hotels, some local transportation).
The potential savings from any currency fluctuation can be lost by (1) the currency going the other direction, and (2) the potential to have the money either lost or stolen.
What most people are concerned with is knowing how much something will cost when they take the trip: i.e., will the hotel be $200 a night, or $240? You can prepay many things before you leave (hotels, some local transportation).
Jan 4, 2012, 4:38 pm
#15
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A bunch of cash may not help you pay a big hotel bill, but a working credit card can do that and get you a bunch of cash.