Why is our dollar dropping?!!!

[disneyfreak89]

We've been watching the dollar the last few months waiting to buy for our trip in January and the value keeps dropping!!! Its at .93 right now!

Should have bought 2 months ago when it was .95!

I know it could be worse, like when it was .68 years ago but still. OUCH!

 

[Muddypaws]

You can thank the Bank of Canada (partly) who decided that the lower Canadian dollar was better for business. Lousy for the consumer, but hey! big business benefits...

 

[keaster]

I wouldn't panic, I think that is still a healthy exchange rate. I think if it stays above 90 cents it is still a good deal.

People seem to forget it wasn't that many years ago when the dollar was trading at 78 cents US (that's what it was when we went on our first DCL cruise in 2009!) I also remember when it was barely over 65 cents US!

 

[disneyfreak89]

I wouldn't panic, I think that is still a healthy exchange rate. I think if it stays above 90 cents it is still a good deal.

Question is, should we just buy now or wait and take the chance it will go up by years end?

 

[wiigirl]

I wouldn't panic, I think that is still a healthy exchange rate. I think if it stays above 90 cents it is still a good deal.

People seem to forget it wasn't that many years ago when the dollar was trading at 78 cents US (that's what it was when we went on our first DCL cruise in 2009!) I also remember when it was barely over 65 cents US!

 

[Gina-Gina-Bo-Bina]

Question is, should we just buy now or wait and take the chance it will go up by years end?

Goldman Sachs is forecasting that the loonie will fall to 88 cents USD in 2014:

http://www.thestar.com/business/eco...nie_faces_downgrade_to_88cents_says_bank.html

We have bought as much as we can now.

 

[disneyfreak89]

Goldman Sachs is forecasting that the loonie will fall to 88 cents USD in 2014:

http://www.thestar.com/business/eco...nie_faces_downgrade_to_88cents_says_bank.html

We have bought as much as we can now.

Thanks! I think we will do the same!!!

 

[Gigi22]

The least painful option is to purchase a small amount of US$ on a regular basis. Over time the cost evens out.

 

[Maddysdaddy]

Ultimately it's a matter of perspective. Yes, it would have been nice to buy at $.95 (wish I did as well), but even at $.93, the ultimate impact on a vacation budget is reasonably minimal.

I totally get that every dollar counts, but in the grand scheme of things, on a $5000 vacation, the drop in the dollar is only going to cost you another $100 (or the difference between 1 table service and 1 counter service meal).

 

[busyshrew]

Ultimately it's a matter of perspective. Yes, it would have been nice to buy at $.95 (wish I did as well), but even at $.93, the ultimate impact on a vacation budget is reasonably minimal.

I totally get that every dollar counts, but in the grand scheme of things, on a $5000 vacation, the drop in the dollar is only going to cost you another $100 (or the difference between 1 table service and 1 counter service meal).

I agree, we try not to get too worried about the dollar.
We also pop any "extra" we might have into our USD account, this only occurs every 4 or 5 months.

But oh, wasn't it wonderful, these past few blissful years when we were hovering at or even above par? Ahhh....

 

[Debbie]

I wouldn't panic, I think that is still a healthy exchange rate. I think if it stays above 90 cents it is still a good deal.

People seem to forget it wasn't that many years ago when the dollar was trading at 78 cents US (that's what it was when we went on our first DCL cruise in 2009!) I also remember when it was barely over 65 cents US!

I heard a report this week that said it is the American dollar that is strengthening as much as anything. I agree. 90 cents is good for our economy, and with all of the manufacturing jobs lost, it almost needs to go back to that rate.

The least painful option is to purchase a small amount of US$ on a regular basis. Over time the cost evens out.

This is what I do, however, I did buy a bit more last Friday, guessing that it will continue to slide. I will buy a bit more over the next few months at each pay, too, to help ease the vacation costs a small bit.

Ultimately it's a matter of perspective. Yes, it would have been nice to buy at $.95 (wish I did as well), but even at $.93, the ultimate impact on a vacation budget is reasonably minimal.

I totally get that every dollar counts, but in the grand scheme of things, on a $5000 vacation, the drop in the dollar is only going to cost you another $100 (or the difference between 1 table service and 1 counter service meal).

This is how I look at it, too. It's like driving across town for the gas at 122.3, instead of buying it right around the corner at 122.9.

But oh, wasn't it wonderful, these past few blissful years when we were hovering at or even above par? Ahhh....

Oh, yeah!

 

[badiggio]

It does add up.On a 93 cent dollar.After the 2 and one half% the bank or credit companys charge,make it actually 9 and a half cents on the dollar.5000 Us at this rate tacks on another $475 Canadian.But yes,2 cents difference[GOING FROM 95 TO 93} would only tack on a 100 Canadian.

 

[Turbanator]

Why is our dollar dropping?!!!

China copying and cloning and then mass producing goods cheap does not help

 

[vacation_junkie]

We've been watching the dollar the last few months waiting to buy for our trip in January and the value keeps dropping!!! Its at .93 right now!

Should have bought 2 months ago when it was .95!

I know it could be worse, like when it was .68 years ago but still. OUCH!

I hear ya! I went to transfer $900 over to my US account and it said it was going to cost $993. HUH? I swear last it it would have only been 909.93..LOL

a couple months ago I thought oh give it time, it will go back up..NOPE! Crazy!!

 

[vacation_junkie]

Goldman Sachs is forecasting that the loonie will fall to 88 cents USD in 2014:

http://www.thestar.com/business/eco...nie_faces_downgrade_to_88cents_says_bank.html

We have bought as much as we can now.

My brother is a Financial Analyst for CIBC. He calls hogwash on that theory! I was going to buy a whack of US and said don't its not going to happen.
I hope he is correct!

 

[Gina-Gina-Bo-Bina]

My brother is a Financial Analyst for CIBC. He calls hogwash on that theory! I was going to buy a whack of US and said don't its not going to happen.
I hope he is correct!

I wouldn't want to stake the farm on either Goldman Sachs or your brother. Quite honestly, no one knows for sure what will happen....its all speculation on both sides.

We went ahead and purchased most of our large expenses (flight, tickets, owners fees for our resort, etc.) now partly because some were actually due (like our owners fees for SVR) and partly because we were totally okay with the rate as it stands now. If our dollar strengthens, we will go ahead and sit aside the remaining cash we want to have on hand for shopping and dining, taking advantage of a better rate for our final vacation costs. If it drops, then we can pat ourselves on the back and congratulate ourselves for our forward thinking knowing that the biggest expenses were covered before the dollar nose-dived.

Our first trip to Orlando was in January 2009, and I think our Canadian dollar was at about 70 cents US then. So even 90 cents seems pretty decent in comparison.

My DH works in the auto industry, so a low Canadian dollar means better profitability for the company he works for. We always try to keep that in mind when our dollar declines.

 

[vacation_junkie]

I wouldn't want to stake the farm on either Goldman Sachs or your brother. Quite honestly, no one knows for sure what will happen....its all speculation on both sides.

We went ahead and purchased most of our large expenses (flight, tickets, owners fees for our resort, etc.) now partly because some were actually due (like our owners fees for SVR) and partly because we were totally okay with the rate as it stands now. If our dollar strengthens, we will go ahead and sit aside the remaining cash we want to have on hand for shopping and dining, taking advantage of a better rate for our final vacation costs. If it drops, then we can pat ourselves on the back and congratulate ourselves for our forward thinking knowing that the biggest expenses were covered before the dollar nose-dived.

Our first trip to Orlando was in January 2009, and I think our Canadian dollar was at about 70 cents US then. So even 90 cents seems pretty decent in comparison.

My DH works in the auto industry, so a low Canadian dollar means better profitability for the company he works for. We always try to keep that in mind when our dollar declines.

IT all goes back to the saying "Better be safe then sorry"

 

[pigletto]

We just came back from a Disney trip where at least a few thousand of our purchases and food were made at the last minute and yep.. it hurt. Especially since we travelled so many times during the at par or close to it days.
Regardless, I make every penny count on my trips. I'll be paying close attention. We're kicking around the idea of something different for our next big trip (we always do this after a Disney trip) and it just might determine whether we go to the Canadian Rockies like we've always wanted, or to California like we've been considering. I don't know what my cut off point will be but hopefully it doesn't get too low.

 

[Gina-Gina-Bo-Bina]

We just came back from a Disney trip where at least a few thousand of our purchases and food were made at the last minute and yep.. it hurt. Especially since we travelled so many times during the at par or close to it days.
Regardless, I make every penny count on my trips. I'll be paying close attention. We're kicking around the idea of something different for our next big trip (we always do this after a Disney trip) and it just might determine whether we go to the Canadian Rockies like we've always wanted, or to California like we've been considering. I don't know what my cut off point will be but hopefully it doesn't get too low.

Welcome back!!!!!!!!!!!!!!!!

Can't wait to hear all about your Christmas trip! In the meantime, I think you should give some serious thought about one last August trip to Orlando.....for old times sake ....sometime between the 17th and the 31st . I can even hook you up with a great deal on accommodations at a gorgeous resort . We've got a Dismeet brewing and it sure would be fab to have you there too!!!

 

[pigletto]

Welcome back!!!!!!!!!!!!!!!!

Can't wait to hear all about your Christmas trip! In the meantime, I think you should give some serious thought about one last August trip to Orlando.....for old times sake ....sometime between the 17th and the 31st . I can even hook you up with a great deal on accommodations at a gorgeous resort . We've got a Dismeet brewing and it sure would be fab to have you there too!!!

Well twist my rubber vacation planning arm why don't you?

It's not completely out of the realm of possibility but we have to see how the year unfolds job wise for dh. I will be keeping it as a distinct possibility though. We were even saying on the trip we were just on that we wouldn't mind doing a Universal only trip this summer and that the boys really missed the water parks on this trip.