The Us Dollar

[GAMEFINEST]

The US dollar is almost equal to the canadian dollar, your thoughts :uhoh:

 

[DNP]

It will be less then CAD soon and will continue to fall down...

 

[hugegrowth]

Sign in my local (Canadian) gas station yesterday "US $ at par". That really makes it sink in, because it's been decades since anyone's seen that kind of sign. Today it's at 97.7 I see. I feel bad for all the industries that depend on a lower C$, like forestry, pulp, manufacturing, tourism, exports. But then other industries will do well because of this. And a winter vacation to somewhere like Florida or Hawaii will be cheaper for Canadians.

With oil and metals doing so well, the Canadian dollar will probably continue to rise.

 

[Theo]

Cheaper dollar, better exports. Combined with a Fed cut of the rates and coming holiday season inflation should drop.

Now it's time to sell domains to our European friends

 

[hugegrowth]

If other currencies rise faster than US$ domain prices, domains will start looking cheaper to non-US buyers. The standard currency for domain trading may become euros.

 

[Theo]

Trading currency is irrelevant. One maximizes their asking price regardless of location. But yes, at 2 x times the dollar, the British pound give UK-based buyers an advantage.

 

[Stinos]

That's good for me as I have euros. So domains are little bit cheaper ;-)

 

[domainah]

a weak dollar makes the oil and gold price rise on a USD basis as those are traded primarily in USD..that hurts most US industries..as oil and gold seem to appreciate in value to us, but not as much to other countries...I recently was asking for an appraisal of a domain on a European domain forum and was quoted 20k Euros.., I dont think anyone here thinks its worth more than 15k USD ...so I think whoever has domains that have European end users should really start looking towards the EU.

 

[katherine]

I am glad I get paid in euros :smilewinkgrin:
Now is a good time to acquire domains in USD :yes:

 

[Adam DickerAdam Dicker is verified member.]

As a Canadian that gets paid in US$, it stinks!

-=DCG=-

 

[GAMEFINEST]

Will the rate cut help?

 

[whitebark]

As a Canadian that gets paid in US$, it stinks!

-=DCG=-

Agreed!

The time is almost nigh where we will have to start charging in C$'s.

For a Canadian consumer it's good when buying anything coming from south of the border, but it will start to hurt our non-resource based exporters since so much of our trade is singly heading south.

The Canadian economy is still very strong - unemployment is near historic lows, commodity prices are still very high - especially oil and gas, and our government continues to turn massive surpluses.

US travel to Canada is down slightly but that is being picked up by a resurgence of travelers from Europe and especially Asia.

In the domain world it makes buying much cheaper, but selling doesn't bring in as much - so its a saw-off. Buying things like articles, templates, scripts etc is much more attractive though.

For Canadians who use Pool to grab .ca's who wants to bet that they switch to Can$ when our dollar overtakes the US$? :smilewinkgrin:

Best thing though - for those Canadians living on the border (I'm less than five minutes away from a border crossing) it means cheap cheap cheap American gas!

 

[Theo]

Exchange rates are not linked directly to domestic economy but international trade. The rate cut is not a devaluation of the dollar; it's a means of lowering the domestic consumer debt.

 

[scorpio]

Here the situation is ..
3 months back 1 USD = 46 Rs
Now 1 USD = 40 Rs.

So things which we import have become cheaper for us like petro , gold , silver , foreign travel.

Things we exported have become less profitable and profit margins have gone down 10% on currency account. IT companies, textile , handicraft and like...

My revenue went down 10% cause of weeker $ .

 

[whitebark]

"Currency traders are concluding that there's nothing the U.S. economy can do that Canada's can't do better. Much better."

Excellent article explaining the situation:
http://www.bloomberg.com/apps/news?pid=20601082&sid=aVgb1aMzQSQY&refer=canada

 

[Gerry]

I am glad I get paid in euros :smilewinkgrin:
Now is a good time to acquire domains in USD :yes:

I think that is what we are experiencing across the board in not only domains but US goods and property in general.

Your point about buying domains in USD is well taken. But on the other hand I have priced mine in either euros or GBP.

The devaluation of the USD against other currencies has postponed overseas trips for us. Initially we had planned another trip to Vienna/Northern Italy about this time now along with a planned trip to the Greek Isles in late spring 2008 and a kayaking trip late next summer to Nova Scotia.

But all of this is on hold at present. While it may be a boon for foreign investors/travelers to the states, it is the opposite for us.

Will this impact other economies?

I would think so. If fewer travelers are taking those planned trips or scaling back on purchases from overseas then it could have far reaching implications in general.

 

[gawnd]

there very well could be a run on the dollar coming on - and the rate cut certainly won't help. dollars (i.e. government bonds to pay for our federal debt) are now less attractive internationally as they now have lower yields relative to other government backed instruments that are available. the fact that the fed seems to be discounting inflations risks is troubling to me and i don't trust today's bounce. ben bernake will try to inflate his way out of this problem - didn't cnbc used to call him helicopter ben back before things got more real? anyway - count on a lower dollar. commodities and anything, domains included, priced in USD will appreciate - but yeah, sadly no trips to europe anytime soon for those of us in the states.

 

[DomainsInc]

As a Canadian that gets paid in US$, it stinks!

-=DCG=-

Very much so. I remember the days of getting 1.65 for every US dollar.

 

[Gerry]

As a Canadian that gets paid in US$, it stinks!

-=DCG=-

I work with several associates who are from Canada. We were just discussing this. It is a mixed blessing. Now that it is almost 1:1, it is funny to hear them gripe about their parents coming down for a visit all the time. They say it used to be once, perhaps twice a year. Mom and dad liking the dollar ratio but it is really hindering their child's play and party time. Too funny. :lol:

 

[whitebark]

Well all those in Arizona, California and Florida who are sick of Canadian snowbirds better be prepared for an avalanche of them this year!