Friday, February 29, 2008

Currency Exchange Rate

Has anyone noticed the US Dollar is falling. I thought it would be interesting to keep track of how much things change over time. I started tracking on 2/14/08. I imagined buying a Catamaran for 500,000 EUR. After all most of the Cats are in other countries, so why not compare the US dollar to the EUR.

If you bought a Cat for 500k EUR on 2/14/08 it would cost you $731,903.10 US. If you decided you wanted to sell the Cat today for what you purchased it at ($731,903.10 US) it would only take EUR. This is a difference of 18,163.96 EUR after only 15 days. If you waited and bought the boat today in US, you would have to pay $27,548.27 US more today then if you bought the cat 15 days ago.

This sure makes you think twice about buying a Catamaran over seas now rather then waiting. I am hopeful that by the time I am ready to buy that the US Dollar is beginning to improve. On the other hand if I buy now it will cost less today then if you buy tomorrow. I guess there is more then one way to look at it, but with a large purchase like this, it is important to do your math. Make the wrong choice and you end up with a purchase that will depreciate in value very quickly. Make the right choice, and it may not depreciate as quickly. This is important to me since I suspect I will at some point be upgrading to a new boat.

I used the Universal Currency Converter to gather the information above.

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