Euro exchange rate is no holiday for American shoppers in Germany

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Euro exchange rate is no holiday for American shoppers in Germany
By Matt Millham, Stars and Stripes
European edition, Friday, November 30, 2007

When it comes to Christmas cheer, the dollar exchange rate is a downright Grinch.

Just ask workers at on-base Käthe Wohlfahrt stores, where tree ornaments, nutcracker figurines and other holiday paraphernalia are peddled year-round.

The store’s prices have changed little, if at all, since last holiday season, said Lisa McCarty, manager of the store in Vogelweh, Germany. But those prices are in euros.

When converted into dollars at the register, it’s evident that the exchange rate has driven up the cost of tree-trimming and hall-decking for Americans who shop at the stores.

An average-size wooden Käthe Wohlfahrt Santa priced at 55.50 euros, for instance, would have gone for $72.60 the day after Thanksgiving in 2006. This year, that same Santa, still priced at 55.50 euros, went for the equivalent of $82.28 on Friday, according to Federal Reserve Bank of New York exchange rates.

When customers see converted prices like that pop up on the register, “they do have a little bit of shock,” McCarty said. “They’re just seeing the difference between last year and this year.”


Rest of article at: http://stripes.com/article.asp?section=104&article=50626