Best exchange rate

Walker34

Hi,
I am planning a family holiday in July in the US and need to get dollars at the best price between now and then for day to day spending. What is the most cost effective way of doing this for say €5k

coylemj

In the last 6 months 5,000 Euros would have bought you anywhere between USD 6,343 (Sept 11th 2010) and USD 7,090 (Nov 4th 2010), today the Interbank rate would yield USD 6,903

My guess (and as an amateur it's only a guess) is that the Euro will rise against the Dollar when the ECB starts increasing interest rates and that will probably happen before next July so for day to day cash I'd hold off buying dollars until closer to when you intend to travel.

The best way to get currency is probably to keep your current a/c in credit and withdraw cash from an ATM when you get there.

Walker34

Thanks for the reply coylemj.....how is this the best rate, I would have thought that using the ATM would penalize such activity. Please elaborate further.

hoff1

Whatll happen to sterling- euro fx rate when interrest rates are increased?

coylemj

Walker34 wrote: »

Thanks for the reply coylemj.....how is this the best rate, I would have thought that using the ATM would penalize such activity. Please elaborate further.

Getting cash across the counter as a foreign exchange transaction in Ireland will cost you more because the costs of handling foreign currency for the bank in Ireland are higher than simply reimbursing a US bank at the interbank rate for spitting out dollars from an ATM in the US.

If you walk into an Irish bank and buy dollars it will cost you more than getting the same amount of dollars from an ATM in the US, it's as simple as that. Make sure that your Irish ATM card has a Cirrus logo and you're in business.

Just don't use a credit card to withdraw cash unless you have the a/c in credit, that's the one that will cost you as you'll be charged interest until you get home and clear the balance owing on cash withdrawals.

coylemj

hoff1 wrote: »

Whatll happen to sterling- euro fx rate when interrest rates are increased?

The Bank of England will probably increase interest rates over there fairly soon so the overall effect will probably be neutral if, as expected, the ECB increases rates in the Euro zone at around the same time.

Walker34

Thanks for the information folks;)

EthicRanger

banks?
paypal?
payza (( that's where i need them) would give $4814.20 USD 1 Euros = 1.20355 U.S. Dollars )
?
Thanks