Weeping for the dollar
The dollar’s weakness has been a very big story this year, and one which I’ve followed with keen interest. On one hand, as a fairly frequent traveller, the high euro has made those trips much more expensive. On the other hand, as an attorney who charges fees in dollars, my fees have become more reasonable over the past year, which I suppose should help my business (at the same time making my home market less attractive). The change over the last year is very evident when you look at this chart from indexmundi.
I’m not much of a pop culture type, but when hedge fund managers and supermodels like Gisele Bündchen are both avoiding the dollar, you have to wonder if there’s any way to turn things around. I’ve seen a number of predictions of a recovery, if not a robust one, in 2008. That said, I think the Economist’s extremely cautious optimism is about the best we can hope for. That means those of you selling in Euro or pound will continue to suffer in the US market, as will those of us earning and buying in dollars.
image from gisele-bundchen.info
I have been weeping for the dollar this past year. I make USD but live in EUR. I never had a grasp on the currency exchange until it became a reality. Now I realize it’s like an adjustable rate mortgage which is something I would never, in a million years, sign up for. Here’s to better rates in 2008!
That’s a tough spot to be in – when I was working in Europe earning dollars I was able to negotiate an deal to cover exchange rate fluctuations. Even better, my employer decided to make it one way, meaning I was protected when the dollar was weak but I was doing quite nicely when the dollar strengthened later in my career. Of course, then they switched me over to the native currency and it became just a normal paycheck.