the shrinking dollar

[is]

For anyone headed for Asturias this summer (2007), keep in mind the euro exchange has just hit a new 2-year high. As of April 20, 2007, the euro stands at $1.3637. On Tuesday, the UK’s pound sterling also hit a new high against the dollar. For each pound sterling, you now need to shell out $2. The greenback is a shrinking violet.

The bad news (for Asturian-Americans, at least) is that US interest rates are unlikely to rise further, whereas the European Central Bank still plans on raising its interbank interest rates. In June, ECB bank rates of 3.75 basis points are likely to be raised to 4%, putting more downward pressure on the dollar. Prices for fabes, cabrales, afuega’l pitu will go up at La Tienda. And we may have to self-build our bagpipes...

For more on the new dollar low, see today’s story in the Financial Times: http://www.ft.com/cms/s/41e0ff3c-ef20-1 ... 10621.html

[Betty]

Yes, you are so correct, Is! We suffered the exchange rate shock last October when we visited beautiful Asturias. The rate then was $1.3305 for the buy rate and $1.2305 for the sell rate. I asked our banker how we could EVER make any money with that method!! I'd better stock up on LaTienda's chorizo!! And, how I would LOVE to have that wheel of Cabrales left behind......
Betty