Christmas shopping in New York is usually thought of as an expensive indulgence rather than a bargain hunter's dream. But this year, there are savings to be had if one is spending euros, sterling or yen. With the dollar suddenly sliding against all the main currencies, shoppers in Europe and Asia are being told they can get their iPods, Nintendo Wiis and Armani suits cheaply if they buy them in the US.

Anyone tempted to make the trip a week ago will be even more tempted now - the dollar went on to register its worst week since June, falling 2 per cent against the euro and 1.9 per cent against sterling. Yesterday it hit a 20-month low of $1.3180 against the euro and a two-year low of $1.9465 against sterling, meaning it has fallen 10.8 per cent against the European single currency and 12.4 per cent against the pound this year.