The US dollar fell to record lows against the euro on Wednesday, hitting $1.3834, its lowest value since the introduction of the euro in 1999. Today it’s still down there — $1.3819 to the euro in mid-morning trading.
Why? Industry analysts blame it on a lousy US housing market. Fed Chairman Ben Bernanke’s speech yesterday, in which he cut back on 2007 projections for the US economy, didn’t help either.
How does this affect US tourists in Europe? The New York Time’s ran a reality check yesterday that was kind of funny and kind of scary. After all, you can laugh off a $5 cups of coffee in London. But $500 for a hotel room? Come on, folks! You can easily find something more affordable.