The euro, traditionally stronger than the U.S. dollar for years, is projected to weaken to parity or lower against the dollar in 2025, providing a boost for American tourists' purchasing power in Europe.
The euro has largely been stronger than the U.S. dollar for decades. That's made it relatively costly for Americans to make purchases in most European nations.
"That's a good thing for American tourists traveling abroad in Europe," said Brendan McKenna, an international economist at Wells Fargo Economics. Their purchasing power could rise "pretty significantly," he said.The euro has largely been stronger than the dollar for decades, making it pricier for travelers to buy goods and services denominated in euros.Economists expect the euro to fall to or even below parity with the U.S. dollar next year.
Travelers can try to take advantage of these currency dynamics by delaying a purchase until next year. For example, a European hotel or tour that allows you to book now for 2025 but pay later lets you defer the expense — understanding, of course, that it's not a guarantee the euro will continue to weaken against the dollar.Tariffs and trade policy are major factors influencing euro-USD currency dynamics, economists said.
Economic Forecast Euro U.S. Dollar Travel Purchasing Power
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