NASHVILLE, Tenn. (WTVF) – For the first time in 20 years, that dollar in a traveler’s pocket is worth a euro.
Due to rising inflation in Europe and the war in Ukraine, the euro has weakened. Last week, one US dollar and one euro were worth the same for the first time since 2002.
The exchange rate fluctuates frequently. As of July 27, to get one euro, you need one US dollar and two pennies.
The favorable exchange rate is coinciding with the first summer in three years that European travel is again a safe option.
Lee Robinson is a travel advisor at Belle Meade Vacations. Many of its customers opted for domestic travel in 2020 and 2021, but 2022 is a different story because there are fewer restrictions due to COVID-19.
“They didn’t want to come down with COVID, get stuck somewhere and not be able to get home,” Lee Robinson said.
Now, being able to say that the exchange rate for the euro is the best it has been in two decades is a bonus.
“It’s a huge relief. It’s one of those secondary things that customers don’t think about until they’re ready to travel and we start discussing the money exchange, what the exchange rate is, what the approximate USD exchange rate is and then they’re all excited,” Robinson said.
The euro is the national currency in 19 countries, including Italy, France and Spain – some of the first countries to shut down at the start of the pandemic.
The ongoing war in Ukraine and the rise in natural gas prices do not lead expectations to believe that the euro will not return this year.
If you’re going on a trip to Europe, it’s probably a good idea to pay for your hotel room now versus waiting. Even if it’s a few months away, you may also want to exchange your dollars for euros now.
Travel advisors say you should always have some local cash with you for tips, purchases or if your bank closes your card.