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vicgoodwin... vicgoodwi...

Since the Dollar is weak have we seen an increase in the number of South Americans coming because of the exchange rate?

My best friend lives in Brazil and he says that the exchange rate is very nice for them.
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entelia
entelia
Marked as Best! November 27, 2009 09:18 PM
You mean tourists right?
Anyway the $ is weak agaisnt the Euro. Meaning Europeans @ today's rate need .72 euro to buy 1 dollar. For Brazilians the rate is different they need 1.74 reals to buy 1 dollar. So the dollar is not so weak, the real is.

Another way to look at this is with the Big Mac Index. This is an adjusted exchange rate and looks at the price of a Big Mac in a given country and divides it by the price of a U.S. Big Mac.
Let's say that we are looking at the Big Mac in Brazil. If a Brazilian Big Mac is 7 Reals and the U.S. price is $3.29, then - according to the Index - the exchange rate should be 2.12 (7 divided by 3.29) Reals for US$1. However, the Real is trading in the currency market at 1.74 Reals for US$1, so the Big Mac Index suggests that the real is undervalued.

About the Big Mac Index:
http://www.investopedia.com/terms/b/bigmacppp.asp
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