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6/7/05

Businessweek: A Cheaper Europe for U.S. Tourists

BusinessweekA Cheaper Europe for U.S. Tourists

That comes as welcome news to Americans planning a jaunt across the Atlantic and to the Europeans hoping to profit from the suddenly stronger greenback, even if some would like to see an even bigger currency move. In truth, travel to Europe has been growing over the past two years despite the weak dollar. Most analysts say the euro's slide isn't big enough to draw hordes of new visitors abroad. The exchange rate is now about the same as it was last year at this time, and still below the one-to-one ratio that many Americans remember from three years ago -- and would like to see again. The euro is expected to bottom out at around $1.20. Further into the future, however, the dollar remains vulnerable because of the continuing U.S. trade deficit and variables still point to dollar weakness over the long run.

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