Should I Buy Pounds and Euros Now for a May Trip?

[Rockholm]

I see the dollar kinda bouncing in regards to the Euro and the Pound. I am traveling at the end of May. Should I exchange money now to get a good rate? The dollar is practically at 2 for 1 and the euro is getting stronger against the dollar.
Any thoughts?

[RebelOne]

1. I would definitely buy now.

In my opinion, the dollar is going to drop farther.

[no name no slogan]

2. It's a crapshoot no matter what you do.

Currency markets are notoriously fickle. Not many people are able to time them properly.

I'd maybe convert some $$ before you go, but do most of your conversions when you get there. Your rates overseas will be better than what you get from a bank over here.

[amazona]

3. you missed the boat

The exchange rate is already about as bad as it can be, might as well wait until you actually need the money.

If you purchase euros in the form of traveler's checks, the huge transaction fees to get them cashed in Europe are going to wipe out any potential gains from your currency speculation.

People who frequently travel to Europe are pretty much in agreement that the best way to go is to get euros or pounds from an ATM. Be sure to use a low or no fee card to get the euros and be sure you know your four number PIN.

I've never heard of anyone getting a good deal by buying their euros or pounds in the United States. A big player like Warren Buffet who can make a big purchase is not dealing with the same transaction costs per dollar that we do.

The conservation movement is a breeding ground of communists
and other subversives. We intend to clean them out,
even if it means rounding up every birdwatcher in the country.
--John Mitchell, US Attorney General 1969-72

[Us vs Them]

6. Depends on where you live.

American Express travelers' centres do flat rate exchanging, and offer free travelers' cheques (in any currency) for members (small fee for non-cardholders). Hotels will often cash these for free.

Although, I will second the ATM advice. I've usually received favourable rates from my banks on withdrawing from foreign cash machines.

[Rockholm]

8. That's good advice. So sad that I even need to think about it.

I was in London a few years ago and I thought the exchange rate was bad then!
And the Loonie is no longer that much of a bargain for us when we go to Canada.

[Nite Owl]

4. There will be bounces

but the trend is down and there doesn't seem to be much in the way of good news for the greenback on the horizon. It wouldn't think it could hurt to do some of the exchange now.

[KurtNYC]

5. The rate you will pay here at a bank or currency exchange

will probably be worse than if you wait and use an ATM in europe.

Whenever I travel, I use local ATM's (sometimes my own bank) to get the local currency. You get great exchange rate and may only be stuck with the ATM charge of $1 or $2.

I sent my nephew 40 euros for an upcoming trip to Germany. Paid Almost $60 for 40 euros even thought the official rate is around $1.34 to the dollar. Exchange places have to make money so they create a spread between what they buy at and what they sell at. PLus they slap on a transaction fee.

IMHO, even if the dollar slips further you will be better off waiting and getting the currency there.

[hyphenate]

7. I would check out

www.xe.com, which can email you a currency exchange every day of the ups and downs. You can see a trend if you can map it out in Excel or some other spreadsheet. I keep track of Canadian that way myself.

Also, a hint from someone who's done the trip before: don't get a LOT of currency exchanged. Use your credit card or ATM card when you can over there, because you will get the exact rate that the bank gets every time on the exchange. It's a little known fact, but because you're not using a middleman, you're not losing what you would lose if you did a regular over the counter exchange in fees and other surcharges they put on you. In addition, if you are able to get back some of the VAT (this is a popular one in Canada), you will have all the records at your disposal through your monthly statement.

You can also use that advantage on your expenses such as restaurants, hotels and rental cars.

[Kellanved]

9. it might be better to use ATMs in Europe

At least that's my experience when going to the US. I get a better rate at an US ATM than I would get at my bank at home. Plus: certain banks allow me the use of the ATMs free of charge.