Dollar down on euro

The dollar dropped against the euro, hitting an all-time low last Thursday, according to The Associated Press.

Since the introduction of the euro, American markets have been on a decline.

The euro has represented the biggest shift against the dollar in regards to money, income, investments and travel in history.

The basic reason for the domination of the dollar over the years is because it has not had a true competitor.

Previously, the euro has threatened to break $1.60 to the $1, U.S., for the first time ever. This would be the most it ever was valued over the dollar, according to the AP.

Fifteen countries in Europe, including Austria, Belgium and Finland, have all changed over to this unit of money.

Since the adoption, the euro has dropped back under $1.59, according to the AP. The dollar has been held back by rate cuts by the Federal Reserve and economic data.

High inflation on pricey material goods including food, oil and leisure activities makes it harder for students at John Carroll University to travel or study abroad.

Andreas Sobisch, director of the Center for Global Education at JCU, is very concerned about the continued slide of the dollar against the euro.

“It means that our programs over there are getting more expensive,” said Sobisch. He also said that Spain, Italy, Germany and Ireland are all countries that use the euro and the most popular for JCU students.

“The good news for students is that a lot of the added costs are absorbed by the University, which includes tuition and often that of room and board,” said Sobisch.

“The main issue for JCU students is the primary impact of the dollar against the euro and how it can affect their downtime,” he added.

Students are known to travel a great deal when they are abroad, especially within Europe because of the relatively low airfares within the continent.

The outcome of the fall of the dollar against the euro has changed the daily expenses of traveling abroad and also has placed an increase on traveling expenses, according to Sobisch.

“Whether it is the airfare going over [seas], local transportation, hotel or hostels, or food and entertainment, everything is about 20 percent higher than last year in countries that do have the euro,” said Sobisch.

Joe McKenna, an economics major at JCU, plans to travel to Europe next semester. “I know how I am being directly affected now, even before I go,” he said.

“I am really concerned that I will be unable to travel while abroad and experience my study abroad semester to the fullest,” McKenna said. “I am really going to have to manage my money carefully.”

Sobisch suggested that students traveling to Europe should plan ahead when it comes to things like airfare or booking a hotel.

“Shopping online and trying to carefully compare prices using online search tools such as Google or hotels.com to find bargains is a good idea,” he said.
Sobisch said that JCU students who plan to study abroad should get an International Student ID card from the Economics Department for only $22. This card is specialized with discounts, travel insurance and more.

He also recommended avoiding expensive cities like London, Rome and Madrid.