Euro Climbs to All-Time High Against Dollar

  • 17 years ago
  • Uncategorized
The dollar fell to an all-time low against the Euro, passing $1.40 to one Euro on September 20th. It is also on par with the Canadian dollar for the first time in 30 years. The US Federal Interest Board lowered interest rates by one half a percentage point earlier in the week to 4.75% to try and calm jittery markets worried about a falling real estate market, and this has caused foreign currencies to climb in value.
“It’s pretty ugly right now for the dollar,” said Jim McCormick, the London-based chief of currency strategy for Lehman Brothers International, quoted in the International Herald Tribune. “But the markets are having a very rational response to what the Fed did on Tuesday.”
While the strong dollar is beginning to hinder exports from Europe to the US, it has the reverse effect on international real estate investors looking for good deals. With the combination of a weak dollar and slowing property market, it is a great time to look to invest in the United States.
For the past few years property prices have been rising at record rates across the country, particularly in popular areas such as Florida and California. The real estate market has slowed considerably in those areas, as well as across the country in general. There are now many properties on the market that can be had for good prices. Combine that with the fact that European and Canadian money will buy much more in the States, and it is a good time to invest.
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The property market is not only good for international investors looking in the US, but also in countries that peg their currency to the dollar. Many Caribbean countries, such as Aruba, The Bahamas, The Cayman Islands and the Netherlands Antilles, have currencies that are directly pegged to the dollar. As a result, the value that high currencies, such as the Euro, Pound and Canadian Dollar, can get in these counties is increased. As Americans find it more difficult to purchase properties in these countries, others will find it easier

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