U.S. dollar droops

The value of the American dollar has dropped to an historic low - a change that is good for American exporters and European tourists, but bad for American consumers.

For the economically bewildered, this means there is less of a demand for the American dollar since the Federal Reserve cut interest rates and the August credit crisis scared foreign investors into pulling their money from the U.S. As foreign demand for the dollar decreases, its value decreases too.

Two Americans studying abroad explain the impact in shillings and cents. Bethany Kjergaard is studying in Oxford, England, where the value of the dollar has gone down 4% since the start of the year. One British pound is worth $2.05, so when Kjergaard pays £2.70 for her favorite Starbucks drink - a grande vanilla latte - she is actually paying $5.53 in American dollars. When she goes to a movie she pay £8, but she is really shelling out $16.40. Eating out costs at least £10 - more than $20.

Hannah Stone is studying in France, where one Euro is worth $1.47 and the dollar's value has declined 10% since January. She said, "When I breathe, I lose money. Not only is everything more expensive to begin with here, but the dollar helps nothing." In Paris, a moderately-priced restaurant is around €10 ($14.70) for an appetizer and €16 ($23.50) for a main dish. Stone said she shuns Starbucks as a symbol of the Americanization of France, but her friends pay €5-6 ($7-8) for a grande drink.

The dollar's value has sharply declined since late summer, after Kjergaard and Stone decided to study abroad. Both said they never considered the value of the dollar when calculating the cost, but Kjergaard said the unique educational experience (and European fashion) is worth the high price. Stone said there are ways to overcome the economic woes of being American. She has made friends with a fruit seller who knows her name, saves her green bananas and sometimes throws in free oranges: "A smile can overcome many exchange rate problems."