EUROS TO DOLLARS
As the Fed raises interest rates, the rates on interest-bearing investments tend to rise as well. If the Fed raises rates more than the European Central Bank, higher interest returns will attract investor money from euros into dollar-denominated investments. Those investors will have to sell euros and buy dollars to buy those holdings. That drives the euro down and the dollar up.
EUROS TO DOLLARS
A weaker euro can be a headache for the European Central Bank because it can mean higher prices for imported goods, particularly oil, which is priced in dollars. The ECB is already being pulled in different directions: It is raising interest rates, the typical medicine for inflation, but higher rates also can slow economic growth.
Resist the urge to buy foreign currency before your trip. Some tourists feel like they just have to have euros or British pounds in their pockets when they step off the airplane, but they pay the price in bad stateside exchange rates. Wait until you arrive to withdraw money. I've yet to see a European airport that didn't have plenty of ATMs.
Avoid (or at least minimize) cash exchange. In general, I avoid exchanging money in Europe; it's a big rip-off. On average, at a bank you lose about 8 percent when you change dollars to euros or another foreign currency. When you use an airport currency exchange booth such as Forex or Travelex, the hit can be as much as 15 percent.
Likewise, in some non-eurozone countries, the euro is commonly accepted, but usually a bad deal. For example, in Switzerland, which officially uses Swiss francs, some ATMs give euros, prices in touristy areas are listed in both currencies, and travelers can get by with euro cash. But if you pay in euros, you'll get a rotten exchange rate. Ideally, if you're in a non-euro country for more than a few hours, head to the ATM and use local currency instead.
Consider getting back to dollars at the end of your trip. If you have foreign cash left at the end of your trip, and some time to spare, you can change it into dollars or simply spend it at the airport before you fly home. Although you might get a few more dollars from your hometown bank for that last smattering of foreign bills, to me it feels clean and convenient to simply fly home with nothing but dollars in my pocket.
You must express the amounts you report on your U.S. tax return in U.S. dollars. Therefore, you must translate foreign currency into U.S. dollars if you receive income or pay expenses in a foreign currency. In general, use the exchange rate prevailing (i.e., the spot rate) when you receive, pay or accrue the item.
Note: The exchange rates referenced on this page do not apply when making payments of U.S. taxes to the IRS. If the IRS receives U.S. tax payments in a foreign currency, the exchange rate used by the IRS to convert the foreign currency into U.S. dollars is based on the date the foreign currency is converted to U.S. dollars by the bank processing the payment, not the date the foreign currency payment is received by the IRS.
To convert from foreign currency to U.S. dollars, divide the foreign currency amount by the applicable yearly average exchange rate in the table below. To convert from U.S. dollars to foreign currency, multiply the U.S. dollar amount by the applicable yearly average exchange rate in the table below.
Travel money cards and international prepaid debit cards are a safe and convenient way to spend in euros - and if you pick the right one they could help you save on currency conversion, too. Top up your card balance in dollars, switch to euros online or using an app, to spend in stores and restaurants, or withdraw cash from ATMs when you need it. Easy.
The Wise travel money card is likely to get you a better euro exchange rate and lower fees compared to your bank. Spending on the card will use the local currency if you have it in your Wise account - no matter where in the world you are. And if not, the card can simply auto-convert your money at the real rate, for a small fee. You're not limited to buying and holding euros; you can hold balances in 50+ currencies, such as Lira, Francs and Pesos.
Often this is the best way to buy euros (EUR). It is faster and cheaper buy your euros online. The dollar to euro exchange rate is better online and give you more euros for your US dollars. You can reserve your order, pick it up in a store or even have it delivered to your door.
Converts a number to euros, converts a number from euros to a euro member currency, or converts a number from one euro member currency to another by using the euro as an intermediary (triangulation). The currencies available for conversion are those of European Union (EU) members that have adopted the euro. The function uses fixed conversion rates that are established by the EU.
For at least the last decade, a persistent, recurring conspiracy theory has held that major oil exporters will stop pricing oil in dollars, which will then lead to a collapse in the U.S. economy as the dollar becomes worthless. According to some accounts, Iraq's decision to price its oil in euros rather than dollars precipitated the U.S. overthrow of Saddam Hussein, and Iran's threats to move away from the dollar is the real reason the U.S. government is raising the alarm over the country's nuclear program.
The latest item in this tradition was an article by Robert Fisk, a longtime Middle East correspondent, in the London-based Independent. The article warns of a grand conspiracy between the Arab oil states, China, Japan, Russia, and France to stop pricing oil in dollars by 2018. When this happens, Fisk says, the dollar will suffer a severe blow to its international standing and the United States might struggle to pay for its oil. The article apparently caused a shudder in the currency markets yesterday, as panicked investors unloaded dollars in reaction to the terrifying prospect of this alleged international oil conspiracy.
Even if all oil were sold for dollars, it would be a very small factor in the international demand for dollars, as can be seen with a bit of simple arithmetic. World oil production is a bit under 90 million barrels a day. If two-thirds of this oil is sold across national borders, then it implies a daily oil trade of 60 million barrels. If all of this oil is sold in dollars, then it means that oil consumers would have to collectively hold $4.2 billion to cover their daily oil tab.
By comparison, China alone holds more than $1 trillion in currency reserves, more than 200 times the transaction demand for oil. In other words, if China reduced its holdings of dollars by just 0.5 percent, it would have more impact on the demand for dollars than if all oil exporters suddenly stopped accepting dollars for their oil.
If China stopped buying up huge amounts of dollars, as the United States wishes, then the dollar would fall in value against the yuan, thereby making Chinese imports more expensive. The result would be that the United States would buy fewer imports from China, improving its trade balance. Not too many people would be frightened by this prospect.
Even slight exchange rate changes can make a big difference in a vacation bottom line. For instance, consider your hotel stay abroad, typically one of the biggest budget items (if not the biggest budget item) for any trip. One of our favorite new properties in Paris, Hotel Paradiso, offers guest rooms starting at 176 euros per night. One year ago (at an exchange rate of $1.20 to one euro), that would have been $211 per night. Today, that translates into, well, $176 per night.
Suppose that your store is located in Europe, but the majority of your customers are in the United States. If you sell to a lot of Americans, then set your store currency to United States dollars (USD). If you need to pay your suppliers and employees in Euros, then set your payout currency to Euros (EUR). Alternatively, you can open a separate bank account that accepts USD currency, but then you have to manage both accounts and move your funds between them.
If your country supports multiple payout currencies, then you can change your payout currency to another supported currency. To receive the payouts, you need to have a bank account in the currency that you want to be paid in. For example, if your store is located in Canada, and you want to be paid in US dollars (USD), then you need to have a bank account that accepts USD.
Enjoying our first few days in (ta && ta.queueForLoad ? ta.queueForLoad : function(f, g)document.addEventListener('DOMContentLoaded', f);)(function()ta.trackEventOnPage('postLinkInline', 'impression', 'postLinks-53068082', '');, 'log_autolink_impression');Ireland. Today I was asked multiple times when making a purchase with a credit card if I wanted to be charged in Euros or Dollars. The first merchant who asked said dollars would be cheaper. After checking my receipt, I noted the exchange rate he used was higher than the rate posted on currency exchange websites. As my Mastercard does not charge a foreign transaction fee, I will assume from now on that euros would be the way to go,
Hi Glenn,I will be in Buenos Aires in two weeks staying in the Palermo Hollywood District. Where is the best place to exchange dollars into pesos in that area? Love your website, very helpful. Thanks for providing such a great service to visitors
We will be in Buenos Aires only one day from a cruise ship. We are taking a day long tour and then have an airport transport arranged. Wondering if it is acceptable to tip the guide and driver in US dollars.
Hi Glenn,I am visiting Buenos Aires, Argentina next month and I found your website extremely informative. Thank you so much. You mentioned about Western Union being one of the options to get Argentinian Pesos from my local currency (Canadian dollars) At the time of this writing, I see the official interbank rate on xe.com, between CAD and ARS, is 1CAD = 46ARS. On Western Union money transfer page it quoted 1CAD = 57ARS (fine print indicates the actual exchange rate will be determined at the time of payout). The service fee is 7CAD. 041b061a72