Money Strategy

Over the last year, the Dollar has fluctuated wildly against the Euro but has generally gained a lot of strength. Right now it's hanging at about $1.30 per Euro, which is way better than the $1.60 that it cost to buy a Euro last June but not quite as good as the $1.25 per Euro price we had in November.

I don't know if the USD will continue to strengthen against the Euro or not between now and when we head to France, but I do know that the last time the Euro was this cheap was two full years ago.

So you can gamble that the Dollar will continue to gain ground as the European economy goes deeper into the same recession we're experiencing, or you can "lock in" these prices by buying some Euros now.

I'm planning on ordering some Euros from our bank in the next few days to hedge my bet and then perhaps hit the bank again a little closer to the trip if the exchange rate continues to move in our favor.

If you do this, be sure to check your bank's exchange rate. If the "official" rate is, say, $1.30 per Euro, you can bet that your bank will charge more than that. Let's say $1.36. That six cent spread is how the bank profits from the deal. If they charge more than a few cent premium per Euro or tack on transaction fees, it's better to wait and just hit the ATM once you get over there.

You can always check the current "to the minute" exchange rate on Yahoo money so you know what your bank should be charging you. Here's the link