That bottle of French wine or sleek Italian leather sofa you crave will cost more this year, thanks to the low dollar, economists said. And some newlyweds might opt for a hotel in Niagara Falls because a buck won't stretch as far in romantic Paris.

The low dollar could also spark higher gasoline prices and mortgage rates in 2004, said Marcus Noland, a senior fellow at the Institute for International Economics in Washington.

Oil sells in global markets in dollars, which means oil-producing nations could raise prices to offset the low dollar, he said.

The Federal Reserve could raise interest rates later this year to bolster the dollar, he said.

The dollar is trading at record-low levels against the euro, dropping about 20 percent in value over the past year. It is also losing ground to other world currencies, including the Japanese yen and British pound.

The dollar has fallen because investors do not want to buy government securities because their interest rates are low and returns poor. But if the Fed raises interest rates, mortgage rates will rise, too.

Higher mortgage rates would increase the cost of buying new homes and discourage home refinancing, which consumers use to lower monthly mortgage bills. "So get your mortgage now," Noland said.

Still, there is some good news.

For Hawai'i, a stronger yen is a good thing because it means that the Japanese currency goes further when tourists book hotel rooms or airline flights or pay for admission to visitor attractions, encouraging more travel and spending.

The weak dollar also makes American cars, computers and other goods less expensive abroad, which should help U.S. companies improve sales and support jobs, said Jack Strauss, an economics professor at St. Louis University.

And more European tourists will flock to U.S. beaches and amusement parks this year because the low dollar makes the United States a vacation bargain, economists said.

"I do anticipate more tourists coming out because we do have a lot of Europeans here," said Terrie Chambers, co-owner of Fawlty Towers, a motel in Cocoa Beach, Fla., that caters to British tourists. "They get a lot more for their money."

The low dollar will not affect bargain-hunting Americans who go to stores that sell lower-priced clothing, toys and electronics from China, Strauss said. China does not let its currency, the yuan, change in value against the dollar.

"I think (the weak dollar) will not affect the bottom line for the Wal-Mart shopper," Strauss said.

But some U.S. companies that sell imported wares are worried.

Larry Challacombe, president of Global Vineyard Wine Importers in Berkeley, Calif., said his company may increase the wholesale price on Chateau La Boutignane to $12.95 from $9.95 because the weak dollar makes the red French wine more expensive.

European Furniture Importers in Chicago already has raised the price on its leather Barcelona chair to $1,750 from $1,500 because the weak dollar means the store must pay more for the trendy import, managing partner Richard Racana Jr. said.