Currency ServicesCurrency Online Newsletter November 2008

Surge of U.S. dollar creates opportunities for Americans buying property internationally

The dollar index (DXY), a measure of the greenback against a trade-weighted basket of six currencies was up 7.56% in October. The greenback was boosted as traders fled emerging and other overseas markets, as well as some safe-haven buying amid global economic and market turmoil.

US Dollar up significantly against other major currencies in October 2008
- Canadian dollar (CAD) + 13.26% - British pound (GBP) + 11.24%
- Australian dollar (AUD) + 18.34% - Euro dollar (EUR) + 10.20%

The sudden appreciation of the U.S. dollar has created a “window of opportunity” for Americans who have long considered recreation or retirement homes in Europe. The favorable move in the exchange rate has made the purchase more affordable. For instance, in less than four weeks, the U.S. dollar has strengthened by nearly 17% against the Euro, going from .6841 on Sept 26th to .7986 on Oct 27th. If an American client had been looking at a $500,000 Euro property, the actual U.S. dollar cost to the buyer would have decreased by $100,000 during this time period.

Swings like these in exchange rates can happen at any time and in either direction. Thus it is always important to speak with a currency specialist like Currency Online when you have clients considering buying property abroad, as we can help your clients “lock in” the rates and provide peace of mind. In addition, we can save them money with competitive rates.

To find out more about the currency services Currency Online provides please visit Currency Online Limited.

Jeff Steiner likes

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