Dollar's In The Toilet!

[trilingual]

The dollar has dropped today in Brazil to only R$2.88!!! When I arrived on March 21st, it was worth almost R$3.50, so as you can see, that's a significant plunge! The dollar is also now worth about A$2.85 pesos in Argentina, down from nearly A$4 just a few months ago! On Bloomberg this morning, I saw that it now takes US$1.11 to buy 1 euro! And I understand that in South Africa, another favorite inexpensive destination, the dollar has dropped from about 10 rands to the dollar to about 7.80. So start clipping coupons and eating more tuna fish, because your next vacation abroad (if you're American) is going to be more expensive!

 

I don't know how long this is going to last. The Argentine peso and real were undervalued, and now they seem to be approaching something closer to their true values (around 2.80 to the dollar, according to knowledgeable local analysts and economists). If the dollar drops much lower than that, I think it's only going to be temporary and that it'll end up in the 2.80 range. At least I hope so, because that's what I've based my retirement calculations on!