Peter Greenberg: Devalued Dollar
Source: AARP.org
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How will the devalued dollar affect foreign travel this year as far as flight prices are concerned? I plan to go to the Philippines this coming fall unless I find the cost far exceeds what I have been paying in the past.
–Gary, Evansville, Ind.
We’re not financial analysts, but U.S. airlines will be more affected by fuel prices in the short term than by the falling dollar. The good news is that you’re purchasing your tickets in U.S. dollars.
About two years ago, the exchange rate was around 52 Philippine pesos to one U.S. dollar. These days, you’ll only get around 41 pesos for your U.S. dollar, which means that, in effect, you end up paying 25 percent more for everything.
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