Traveling With the Dollar
Date: 09/27/2007Global travelers are feeling a double pinch this year, first from inflation and second from yet another fall by the U.S. dollar.
On a recent trip to England, one nice tea shop in Harrogate charged me $8.08 (£4 sterling) for a cup of coffee. Later in Copenhagen, we enjoyed a mediocre lunch at $88 each (479 kroner). A dinner for three was $900 (49,000 kroner). It didn't bother me so much because I was earning profits in British pounds and Danish kroner…but quite a dent in the piggy bank for the dollar earner, I imagine.
Admittedly, England and Denmark are two expensive countries. Yet prices are rising almost everywhere, especially in terms of U.S. dollars. Even the currencies of Colombia and Brazil have risen over 25% against the greenback in the past few years.
The fall of the dollar is not likely to stop soon. It has been losing purchasing power for 40 years. In 1968 a dollar would buy 400 yen, now it's only worth 115. The dollar fell last week to an all time low--$1.40 dollars to the euro. The Canadian dollar has risen 63% in the last five years and is now at par with the greenback for the first time in decades.
Fortunately there is a safe way to protect against this dilemma of increased traveling costs…called multi currency investing. This strategy increases investment safety and can provide extra profit to counter balance the dollar's loss. The idea is simple--invest in a basket of safe investments in many currencies and countries. (Find out more here)
Gary Scott
For International Living
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