Thursday, April 10, 2008

Getting Pounded

For those considering a trip to visit us and lamenting the 2:1 dollar-pound exchange rate, we feel your pain. The front pages of British papers today are full of news that the pound hit an all time low against the euro--one euro equals 80 pence now (0.8 pound)--and how that is driving up the cost for family vacations to Spain, France and the rest of Europe that has moved to the euro.

From the Independent story:

Tens of millions of British people will experience their own credit crunch on holiday this year as the soaring value of the euro forces them to pay more for everything from the price of a coffee in a Parisian cafe to a hotel room in Barcelona. As currency traders pushed the European single currency to a record high against the pound yesterday, holidaymakers were coming to terms with the fact they now have almost a fifth less spending power on the Continent than a year ago.

Of course, it's all the fault of the United States once again!

...The 17 per cent fall since last February has come about as the euro has powered ahead on the strength of its member economies, while the pound has slumped, most recently because of the knock-on effects of the sub-prime collapse in the US.

So, I guess it's good that Kate and I bought a car and planned to explore England more this year. If only gas prices weren't so high....

--jt

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