|by Meg Zimbeck||Paris, Foreign Currency and Exchange||5|
The value of the euro tumbled this week to a 13-month low against the U.S. dollar. That's great news for American travelers, who now have significantly more spending power while in Paris.
Last spring, when we reported about the currency crunch, the euro was valued at 1.40 against the dollar. At that time, a €200 hotel room cost $280 for anyone paying with dollars. Today, with the euro valued at only 1.27, that same room costs only $254.
That's a big savings, but it gets even more dramatic when you compare this to prices in April 2008. Back then, when the euro was at an astounding 1.60 against the dollar, that same €200 hotel room cost $320.
When you multiply that €200 price for a longer stay, the effect of these shifting currency values becomes clear:
• 3 nights in the Spring of 2008: $960
• 3 nights in the Spring of 2009: $840
• 3 nights in the Spring of 2010: $762
The continuing economic crisis in Europe means that the euro will probably remain weak, with increased spending power for Americans, throughout the summer tourist season.