Rise and Fall of the Euro
Over the last few years the euro has steadily risen against the U.S. Dollar, reducing the purchasing power for the travelling American golfer. This, in combination with increases in green fees, hotel rates, and most importantly pints of Guinness, has made taking a golf trip to Ireland an expensive affair.
The current exchange rate is around US$1.21 per euro. At the end of 2002 it was around 1.00, last summer it was hovering around the 1.20 – 1.22 range and then maxed out at 1.36 at the end of 2004. Thankfully, the dollar has been getting stronger since then and it’s back to around $1.21 today.
The June 11th issue of The Economist says there’s room for further improvement. The article Fast food and strong currencies suggests the euro is overvalued by 17% against the dollar, according to their “Big Mac index”:
How come? The euro is worth about $1.22 on the foreign-exchange markets. A Big Mac costs
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Rob Babcock
Author/Golfer/The Golf Guide Guy
GolfAdventureGuides.com