Some New York stores prefer euros

Now there are reports that some Manhattan shops are also cashing in on the favourable exchange rate - by accepting euros.

Billy's Antiques & Props on East Houston Street is one shop that has been encouraging overseas shoppers to pay in the stronger currency.

The dollar has recently been snubbed by rapper Jay-Z and India's Taj Mahal.

In his latest music video, Jay-Z can be seen cruising round with a briefcase of 500 euros, while it had been reported that various tourist attractions in India, including the Taj-Mahal, had stopped accepting dollars.

Dollar woes

The US currency has resumed its downward spiral over the past week on continued fears that the US economy is in danger of falling into a recession and that interest rates will have to be cut below 3% to prevent this.

Low interest rates make a currency less attractive to investors, who then look to other currencies which offer a better rate of return.

On Friday, it touched an historic low against the euro at $1.524 after falling through $1.50 earlier in the week.

It sank against the Japanese yen to its lowest level in three years and, against the pound, was worth just slightly less than $2.

William Leroy, the owner of Billy's Antiques & Props, has told various newspapers that he often does not even exchange the euros back into dollars, preferring to keep them for his buying trips to Paris.

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