Support our mission

The relative stability of the dollar against major European currencies will leave post allowances for U.S. civilians flat on most of the continent for the next two weeks.

With the exception of Portugal, post allowances will stay at current levels through July 20, according to a biweekly update Sunday by the State Department’s Office of Allowances.

Allowances in Portugal, including Lajes Field, will drop about 20 percent, down from a record high. Post allowance rates in the country are the lowest in Western Europe, and this year have been more volatile than in most other European locales where rates are higher.

The changes — or lack thereof — were attributed to exchange rate variations.

For most U.S. civilians in Europe, post allowances have been steady since March, when the dollar fell sharply against the euro. At that time, allowances went up in every country using the single currency. Rates in the United Kingdom, which uses the British pound, have held steady since February 2007.

Throughout May and June, the greenback on average traded at about the same rate against the euro as it had in March — a little more than $1.55 per euro — according to Federal Reserve Bank of New York data.

The British pound, meanwhile, traded just above $1.96 on average through May and June, nearly the same price as in February, according to the New York Fed.

The European Central Bank last week raised interest rates in a bid to curb European inflation — a move that could exacerbate U.S. inflation and cause the dollar to slump. If that happens, allowance rates could rise.

Stripes in 7

around the web

Sign Up for Daily Headlines

Sign-up to receive a daily email of today’s top military news stories from Stars and Stripes and top news outlets from around the world.

Sign up