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Currency Exchange-NYC??

post #1 of 9
6/17/10 at 11:30am
Thread Starter 
Ok..heading to Amsterdam in Sept. USD vs EURO is not bad right now. Considering hedging myself by buying some Euros now. Where in NYC gives you the best rate? I just called the AMEX travel office and their rate is 1.3189? That does not include the $5 surcharge. The current rate in BBG is 1.236.....Any ideas for a better rate??
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post #2 of 9
6/17/10 at 11:34am
How much exactly are you looking to convert? Your "hedge" is not going to save you much money if the amount of money is not material. You're better off just getting money in Amsterdam
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post #3 of 9
6/17/10 at 11:37am
Why not use the ETF (FXE)?
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post #4 of 9
6/17/10 at 11:40am
Thread Starter 
Quote:
Originally Posted by cchen View Post
How much exactly are you looking to convert? Your "hedge" is not going to save you much money if the amount of money is not material. You're better off just getting money in Amsterdam

Looking to exchange appr $1000. What if the euro rises between now and Sept??
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post #5 of 9
6/17/10 at 11:45am
Quote:
Originally Posted by ter1413 View Post
Looking to exchange appr $1000. What if the euro rises between now and Sept??

Just wait until you get to Amsterdam. Your best case scenario is you benefit by $60-70 or so. You run the risk of losing/misplacing the euro's over the next three months, what if you need the money for something and you need to exchange them back and lose on that side, etc etc
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post #6 of 9
6/17/10 at 11:48am
Just use an ATM machine. The fees from most card companies for FX are very small, they are usually the most competitive and easiest to use.
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post #7 of 9
6/17/10 at 11:53am
Thread Starter 
Yep. I usually use an ATm when I travel but just thought that getting some Euros now when the dollar is strong would be a benefit. So you guys suggest still waiting? Even as the dollar has dropped the last few days???
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post #8 of 9
6/17/10 at 12:07pm
Given that EUR/USD spot is 1.2395, if you want to convert in the US, you'll pay a premium of .0829 (just using the data you gave above) + $5 transaction fee. So if you convert today, you'll get 752.42 EUR and your net exchange rate is 1.329 $/EUR. Now, if you use the ATM in Amsterdam, let's assume you're converting at spot (or something close). Also assuming that there are no additional transaction costs. EUR/USD spot has to rise from 1.2395 to more than 1.329, or more than 7.22% for you to be worse off. I'm not a macro expert, but based on my limited experience in the FX markets and the debt problems in Europe, I wouldn't expect the Euro to rise so sharply in the next 3 months.
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post #9 of 9
6/17/10 at 2:36pm
Thread Starter 
Quote:
Originally Posted by cchen View Post
Given that EUR/USD spot is 1.2395, if you want to convert in the US, you'll pay a premium of .0829 (just using the data you gave above) + $5 transaction fee. So if you convert today, you'll get 752.42 EUR and your net exchange rate is 1.329 $/EUR.

Now, if you use the ATM in Amsterdam, let's assume you're converting at spot (or something close). Also assuming that there are no additional transaction costs. EUR/USD spot has to rise from 1.2395 to more than 1.329, or more than 7.22% for you to be worse off.

I'm not a macro expert, but based on my limited experience in the FX markets and the debt problems in Europe, I wouldn't expect the Euro to rise so sharply in the next 3 months.

Tks for the breakdown!
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