Dollar at 9-month high.

Philadelphia Eagle · Post by **Philadelphia Eagle** » Sun Jun 19, 2005 7:35 am

The dollar is currently trading at a 9-month high against other major currencies.

The forex rates for USD1.00 are currently;

Yen - 108.54

Euro - 0.8139

British Pound - 0.5461

As the Fed continues to raise interest rates, (they are expected to rise by another 25 basis points or possibly 50 in this cycle), funds are flowing strongly from Japan and particularly Europe into the United States.

Foreign investors are parking much of their money in real estate and Miami, New York City and D.C. are favorite areas.

In particular, European investors are growing increasingly nervous about the Euro's longer term strength and are switching funds to what they see as a safer enviornment in the U.S.

lady cop · Post by **lady cop** » Sun Jun 19, 2005 8:59 am

it never fails to amaze me, when Bothwell is flying over here to see me he thinks everything here is cheap! it's all relative. he will take , say 1000 quid to the bank and receive 2000 dollars. then when we go to a restaurant for example, i think it's expensive, he thinks quite the contrary. i can't grasp it sometimes.

Philadelphia Eagle · Post by **Philadelphia Eagle** » Sun Jun 19, 2005 9:56 am

lady cop wrote: it never fails to amaze me, when Bothwell is flying over here to see me he thinks everything here is cheap! it's all relative. he will take , say 1000 quid to the bank and receive 2000 dollars. then when we go to a restaurant for example, i think it's expensive, he thinks quite the contrary. i can't grasp it sometimes.

Generally, prices are around 1.5 to 2 times more expensive in UK than they are here. It's mainly due to higher UK taxes coupled with a smaller domestic market.

Some items e.g. gas are 4 to 5 times more expensive.

B is right - restaurant prices here are much lower than UK.

Lon · Post by **Lon** » Sun Jun 19, 2005 10:01 am

lady cop wrote: it never fails to amaze me, when Bothwell is flying over here to see me he thinks everything here is cheap! it's all relative. he will take , say 1000 quid to the bank and receive 2000 dollars. then when we go to a restaurant for example, i think it's expensive, he thinks quite the contrary. i can't grasp it sometimes.
I know how Bothwell feels, it's the same with me when I go to New Zealand. My income is all U.S. and the U.S. dollar is worth more in Kiwi dollars, therefore most New Zealand things are cheaper for me (Plus No Tipping in NZ & Australia). Bothwell"s income is probably UK and his UK $$$ goes further here.

lady cop · Post by **lady cop** » Sun Jun 19, 2005 10:09 am

unfortunately the converse is true, i am not going to be able to afford a damn thing over there!