Summer travel is picking up this year. If you’re headed to Europe, you may notice that you get more bang for your buck.
Why is that?
For the first time in almost 20 years, the U.S. dollar and the euro have reached parity. Souvenirs will be cheaper for Americans, but Europeans coming this direction may feel the pinch of more expensive goods and services.
The U.S. dollar has strengthened against the euro in part because of differences in monetary policy. The U.S. has been raising rates to slow inflation, while the European Central Bank (ECB) has been hesitant for fear of slowing economic growth. However, with the ECB raising short-term rates last month for the first time in over a decade, euro/dollar parity may be short-lived.
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Euro/Dollar Parity & Summer Travel
August 02, 2022