Mar 18, 2008
We had quite a day yesterday on the currency markets, where conditions have worsened for the traveler
In all the attention that's been paid to the surging Euro and British Pound, less has been devoted to the Japanese Yen, whose rise is just as startling -- and disconcerting to the American traveler. On Monday of this week, the Yen "strengthened down" to a level of 95 to the U.S. dollar, its strongest position since 1995. It then weakened a bit, and you will now receive about 96 yen for one U.S. dollar (instead of the 114 yen you received not so long ago).
All this means that we will not be rushing to Japan this year; receiving only 96 yen to the dollar, the cost of everything will be sky high, and all the moderating measures -- staying in the plainest of ryokans, capsule hotels, business hotels -- will do little to ease the jolt. (Keep in mind that "96 yen to the dollar" is an official rate; when you pay a 5% commission to a money-changer, as you almost always do, you will end up with only about 91 yen for one U.S. dollar).
As for the European currencies, the Euro reached -- at one point on Monday -- a rate of $1.59 before dropping back to about $1.58. If our Federal Reserve continues committing hundreds of billions of dollars of assistance to failing investment brokers and hedge funds, the resulting inflation of our currency will ultimately cause the Euro to reach a rate of $1.65 to the dollar -- meaning that you, as a tourist, will actually need to pay $1.75 for a Euro, once commissions are figured in.
So how's about considering a trip to Santiago, this summer, or to Buenos Aires? If you'll go to the website of Lan Chile Airlines, you'll find that round-trip airfares to Santiago are as little as $565 at that time, much less than you'll be paying trans-Atlantic, and you'll also find that Chilean hotels (either in Santiago or in the seaside resort community of Valparaiso) are available for about half what you'd pay in Europe. We Americans have paid too little attention to South America, and it may be that current currency conditions may change our attitudes.
One drawback: the weather in the southernmost part of South America is chilly in our summertime (their winter) months. But cultural life is at a peak, and the conditions are perfect for touring cities that are relatively uncrowded at that time.
Write and read comments about this post.
All this means that we will not be rushing to Japan this year; receiving only 96 yen to the dollar, the cost of everything will be sky high, and all the moderating measures -- staying in the plainest of ryokans, capsule hotels, business hotels -- will do little to ease the jolt. (Keep in mind that "96 yen to the dollar" is an official rate; when you pay a 5% commission to a money-changer, as you almost always do, you will end up with only about 91 yen for one U.S. dollar).
As for the European currencies, the Euro reached -- at one point on Monday -- a rate of $1.59 before dropping back to about $1.58. If our Federal Reserve continues committing hundreds of billions of dollars of assistance to failing investment brokers and hedge funds, the resulting inflation of our currency will ultimately cause the Euro to reach a rate of $1.65 to the dollar -- meaning that you, as a tourist, will actually need to pay $1.75 for a Euro, once commissions are figured in.
So how's about considering a trip to Santiago, this summer, or to Buenos Aires? If you'll go to the website of Lan Chile Airlines, you'll find that round-trip airfares to Santiago are as little as $565 at that time, much less than you'll be paying trans-Atlantic, and you'll also find that Chilean hotels (either in Santiago or in the seaside resort community of Valparaiso) are available for about half what you'd pay in Europe. We Americans have paid too little attention to South America, and it may be that current currency conditions may change our attitudes.
One drawback: the weather in the southernmost part of South America is chilly in our summertime (their winter) months. But cultural life is at a peak, and the conditions are perfect for touring cities that are relatively uncrowded at that time.
Write and read comments about this post.
Labels: money, south america
Fifty years ago, 
Arthur Frommer is generally acknowledged to be the nation's foremost travel authority. He is the founder of the
