Fears that troubles in the subprime mortgage loan sector would spread to other parts of the U.S. economy caused a new record low of the U.S. dollar against the euro and another currencies today. Financial media reports the euro is at it highest level ever against the U.S. dollar.
As most of my income arrives in U.S. dollars this isn’t a good thing for me. Yesterday a dollar was worth 0.734582 euro but today it’s only 0.728 euro. That may seem like a very small difference but when you multiple this by bigger numbers you can see how this may affect my income:
Yesterday: $1000 = €734,582
Today: $1000 = €728
That’s a difference of a bit more than 6.5 euro. That’s still not dramatic but the problem is that for the past few years the U.S. dollar continued to fall and according to some financial analysts the dollar may further drop to 0.71 dollar per euro this year.
In most months of 2000, 2001 and 2002 the U.S. dollar was worth more than the euro but this changed in December 2002 and since then the dollar continued to sink, as you can see in this graph:
I hope this trend soon changes but I fear that because of the current economic situation in the U.S. this may continue for a couple of years and that’s not good because the drop of the U.S. dollar will continue to erode my earnings