April 17, 2015
On Monday the US dollar surged to it’s highest level against the euro in 9 years. What does this mean for you? It means you can get a lot more Europe for your money.
Europe is a popular destination for travelers because of its wealth of history and travel friendly culture. Until recently, the dollar had a history of trailing the euro keeping Europe out of reach for the American traveler on a budget. Today the dollar is almost at parity with the euro and some economists forecast the dollar to overtake the euro before the end of the year.
This means that instead of getting 75 euros back on your 100-dollar bill (like in 2012), you will receive 100 euros and soon possibly even more for those precious Ben Franklins.
It’s all about the Benjamins Baby, at least for now.
Although it would be nice for travelers to continue to receive a favorable exchange on their money, I don’t expect it to last. Unfortunately, often what is good for travelers is not always good for the economy as a whole. The United States is a major exporter and an expensive dollar can hurt companies who export overseas. A higher price tag for American goods can incentivize foreign markets to look to other more affordable competing exporters and this can hurt our economy. As for now, I would advise keeping a sharp eye on the US dollar and if you have been thinking about traveling to Europe now is the time to go.
Come back next week to find out how to get the best exchange rate on your money.