Sucking dollar putting my vacation in jeopardy

[LobWedge]

I'm supposed to travel to Arizona over Christmas, but our "incredible shrinking dollar" is threatening my plans at the moment. The aggravating thing about all of it is that there's no good reason for it. We're the ones that have the sound financial system while the US economy tanks, and yet the loonie still gets the crap kicked out of it. There's no way we should be performing that poorly against the greenback.

If I don't see some significant rebound in the next few weeks, I'll have to cancel my trip.

Anyone else rethinking travel plans right now?

[little brit]

I'm with you. wanted to do our month Barbados vacation again, but with house reno's and the shrinking dollar don't think it will happen.

[spackler]

Yeah, I think we'll still be travelling. Rates are cheaper, so that offsets the currency change to a certain degree.

[BG458]

Actually our loonie should be doing even worse but our financial system is actually holding it where it is, our loonie is linked directly to the things we largely export (oil) so its a catch. As you see the prices at the pump go down currency investors around the world look at the Canadian dollar less attractively. But this thing is going to affect the whole world, you win some and you loss some. If you can still afford your trip man I say go for it. You said you see no good reason just telling us about it is a good reason. There is only a few things in life that make a person really happy and if golf is one of them go and have a good time. Take Care.

[Sakuraba]

I'm still planning to go to Phoenix in March, but I'm now hoping the dollar will be up a bit by then.

[mpare]

While I am not looking for any debate on this (it would be politically inappropriate for this site), you might want to read Ralph Goodale's commentary in this morning's National Post. It provides a sobering reminder of why we may not be able to weather the financial woes that are buffeting us right now: http://www.nationalpost.com/opinion/...html?id=979515

[QUOTE=LobWedge;283789] ... There's no way we should be performing that poorly against the greenback.

If I don't see some significant rebound in the next few weeks, I'll have to cancel my trip. ...

QUOTE]

[big mac]

Have got to admit it does not look good but we are going anyway We have cut back in the last two months and it's surprising how fast it adds up. The fact that gas is going to about 1/2 of what it was two years ago--we have an efficiency unit and can cook our own meals---we just wont play the more expensive courses that often.

I agree 100% Why the hell is our dollar so low compared to the US? The fat cats on Wall Street started this mess

I know Dan---just thinking on paper

[hitanylie21]

A couple things:

1. Our dollar's exchange rate is tied to oil. In fact, its even known as an oil currency. Therefore, when crude per barrel goes down (or plummets in this case), our currency will go down. As a side, this also means that fuel prices for road trips will be more affordable.

2. Our dollar's exchange rate is compared to the American dollar and not just an isolated value in and of itself. Right now, Americans are scared of investing in the market and lending money. Essentially, people are keeping more and more of their money in cash (incorrectly) which inter alia drives up the value of the US dollar. This means comparatively, our dollar is worth less, and drives the price down.

So that's why the loonie is "performing poorly" even though its true that our financial system is probably in the best shape in the G8.

[atomic]

I would also argue that our dollar should never have been as high as it was. $146 a barrel for oil? C'mon...seriously! And if you think the dollar is weak, recall that it bottomed in the low 60's not so many years ago. Just think, that if you fill your tank once a week, it is now $15 cheaper. So, bank that cash and take your trip.