Dollar dropping badly

I was in Spain in February. At the time, the US dollar equaled 0.98 euros. Today the dollar will get you 0.85. That's more than a 13% drop.

It's really impossible to talk about the reasons for this situation without getting political. So I won't. But it's not hard to figure out.

I amended my last line of post to avoid the unavoidable.

People that plan their lives off random highs and random lows generally dont have very fruitful lives.

The dollar over the past five years has averaged about 90 euro cents. So we are about 5% below the 5 year average.
The value started going up pretty quickly in mid-November 2024 year and maxed at 98 cents in early January (not February).
It's been dropping at a relatively uniform pace down to the current 85cents but it took 7 months to reach this.
In return for a weaker dollar US products are less expensive around the world which increases US sales; which is a bad thing if you have already made your fortune and now want to live the life in Europe.

The five year average on the Hungarian forint is about 350 to the dollar. The current is 338 to the dollar. That means here, now, today, its down about 3% off the average.

But very much worth watching ..... but too early for holiday makers to worry.

Golf clap for Mr. E

Looking back over historic exchange rates at the time of my travels, the current rate is aligned with the historic rate and the last couple years have been the anomaly.

Lynn, thats called inflation and a lot of Europe has had more inflation than the US over the last few years.

A few small corrections for Mr. E:

• The dollar was last at .98 euros on February 2nd.
• It hit .85 on July 1st, so the drop took 5 months, not 7.
• The slide has not been at a particularly uniform pace. There was a drop from .96 to .93 between March 2nd and March 5th. There was another drop from .92 to .88 between April 7th and April 11. That's more than half the total decline in 9 days.

Here is a chart to make you feel better about the current exchange rate

https://www.exchange-rates.org/exchange-rate-history/eur-usd-2010

The value of the US dollar has zero impact on my travel plans.

Zero impact on ours too. At this point in our lives, closing in on 70 years, time is more valuable than any exchange rate. We won't postpone any planned trips this year or next because of the fall of the dollar. We saved our entire working lives for retirement travel and nothing short of a devasting illness is going to slow us down.

The dollar is often around 1.12 for a euro. The 1.02 which lasted from the November election until the day after the inauguration was an unusual drop. It is now going up about a cent a week. In July 2021, I paid 1.20 per dollar, but in October 2022, I paid 1.02. It's like roulette. Just enjoy your trip. Drink more wine in the good times and drink less in the bad.

If it helps to ease some of your pain, our Canadian dollar exchange rate with the Euro and the Pound (and the US dollar) is particularly brutal these days and has been for some time….we have no choice but to knock it up to the price of travel:)

Well, I’m glad that for some peoplethe value of the dollar against the euro has no impact, but I think for a lot of people it does

For me, it doesn’t change the travel plans, but it does perhaps change some of the things I do or places I stay. And yes, I can tell when I get the alerts on my app when I charge things that Europe is more expensive right now than it was when I was here several months ago. And that will make me cut back on some things

Well, I’m glad that for some peoplethe value of the dollar against the
euro has no impact, but I think for a lot of people it does

Absolutely. If you mfg widgets in Alabama for sale in the EU your widgets just got cheaper than the Chinese competition widgets and sales went up 35% So you hired 20 more workers to whittle widgets.

Having problems feeling sorry for the woes of you Americans. $Canadian to €Euro is 1.62, £pound is 1.91.

Lane, you are falling for the same trap by looking at daily highs and lows. Plot the curve and the curve from the first high in the last year (jan) to current is pretty smooth for this sort of thing. There is a down trend, but nothing chaotic is going on. Just life. It will correct and track up and down where market forces direct it to. If you aren't playing the market, it's not a thing to worry about.

It's really impossible to talk about the reasons for this situation without getting political. So I won't. But it's not hard to figure out.

On July 1, 2014 I was in Europe. Exchange rate was 1.37. Evidently, it's not political. It's monetary policies on both sides of the pond.

On July 1, 2014 I was in Europe. Exchange rate was 1.37. Evidently, it's not political. It's monetary policies on both sides of the pond.

I find this to be an astute observation

Well, I’m glad that for some peoplethe value of the dollar against the euro has no impact, but I think for a lot of people it does

Sure it has an impact. The price for accommodation on my next trip has increased by 10%, I prepare for such contingencies, build a flexible budget , and don't panic. I keep things in perspective, can follow historic trends and keep up on monetary policy. Recent life events also gave me a new perspective on things.

People that plan their lives off random highs and random lows generally dont have very fruitful lives.

As one of those 'people' I have to say I was a bit insulted by this statement. Maybe I don't plan my whole life that way but I sometimes have to plan my travel that way. Apparently some of us have smaller pocketbooks and tighter budgets than others on here. But our lives, at least mine, are still fruitful.

I have travelled when the dollar was up and when it was down. I prefer the up and will still go to Europe twice this year with the current down.

Europeans call it tariff compensation.

jkh, by the time you get there, it could be back up. But if you wait to see if it comes up and then plan it could go down before you get there. Sort of my point above. Its a few points below average right now and thats a concern for people on fixed retirement budgets like me so I go to my wish list and think, okay, this year I do the cheap ones. If the market improves I save, if it continues in the current course, I am okay cause Bosnia is not expensive (I just booked for September and the rates had a tiny bit to do with it).

Decades ago my first trip to Europe euro was 1.40 to the dollar. Obviously a more expensive trip.
Two months ago I got $1500 euro from my Credit Union which orders foreign currency at no cost. I saw the trend and the politics and decided to be proactive.
Currently in Sweden where the sek so far is not affected. However on my next trip to Italy,I will decide if I want to spend those euro or use my credit card for most everything as I usually do

Its all in the eyes of the beholder. I'm going to England in September, yes, I would love for the dollar to be stronger. I'd love for a lot of things to be different. When we were in New Zealand a bit over a year ago, we were amazed at all the great values. Then I heard a group talking about how very expensive everything was. I was puzzled until I figured out they were Canadian. I watch the dollar probably more than most, but we in the U.S. tend to view everything from a U.S. point of view.

And, of course, it matters more to some people. Its nice to have a YOLO viewpoint, but some would like to travel AND pay their rent, health insurance, etc.

Last time I went to Europe the Euro was at 1.50 dollars to Euros. It was almost 1:1 when I planned the trip.

It is what it is.

The exchange rate has been a lot worse in the past. Granted, it’s worse than it’s been for a while, but it could get worse still. A few dollars or even a few hundred dollars isn’t going to stop me from going overseas if I want to go. Save a little longer before you plan the trip. Cut out unnecessary expenses like Starbucks, going out for meals, that 6-pack of beer, cigarettes, what it might be. Those savings will more than offset the change in the exchange rate. Priorities, priorities, priorities.