Post Allowances Plummet on Dollar's Climb

Week of November 03, 2008

Post allowances given to American civilians on mainland Europe dropped as much as 30 percent Sunday, falling to their lowest point since March 2007 in response to the dollar's recent meteoric rise against the euro. Allowance rates fell in Germany, Italy, Spain, Portugal, Belgium and Luxembourg. Post allowances typically fall as the dollar rises, but rarely in such a short period of time as they have in Germany. The dollar's record rise against the 15-nation euro contributed most to the allowance drop in the country. A new retail price survey data indicated that the gap in prices between Washington, D.C., and Germany also contributed to the drop. Read the full article on Military.com

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