The dollar is at its lowest level ever against other major currencies, making shopping in America a huge bargain for foreign tourists.
The greenback dropped yesterday to yet another new low against the euro for the seventh time in a month, hitting $1.35.
It has the effect of giving a restaurant patron here a $25 meal that would cost $50 in Paris or London, analysts said.
European luxury goods sold here also are virtually cheaper here than in their home countries, due to Europe’s taxes.
Economists fear that Europe’s exports, which account for about one-quarter of the region’s economy, would be wrecked if the dollar goes much lower than $1.35.
Merrill Lynch yesterday predicted that the dollar would continue to slide against the euro to around $1.39 by next March.
The dollar has lost about 32 percent of its value against the euro since 2002 – giving Europeans 32 percent more buying power in deals paid with in dollars, including shopping and business.
The dollar also hit a low against the Japanese yen, dropping here to 102.81 yen, and fueling a tourism boom of Japanese travelers here, up 31 percent this fall.
The greenback was also down to 1.1461 Swiss francs from 1.1588, and down to 1.1798 Canadian dollars from 1.1864. The British pound rose to $1.8818 from $1.8678.