European economic woes have been in the headlines lately, as the various eurozone governments try to address issues of debt and stagnant economic growth. Because it’s not yet certain what the solutions will be, and some even wonder whether there will be solutions at all, many banks and other investors have flocked to the safety of the U.S. dollar.
This is very good news for American travelers heading to Europe; the exchange rate hasn’t been this favorable in two years. If you’ve been putting off that trip to Tuscany or Paris or Barcelona, now is the time to act.
For example, if your proposed vacation costs €5,000, today that would equate to about $6,150. If you had taken that €5,000 vacation back in June 2011, it would have cost about $7,250, a difference of $1,100. That’s easily an air ticket, or a night at the Cipriani.
Exchange rates are always unpredictable, but lately the trend has been very much in favor of American travelers. We certainly hope that Europe gets its financial house in order soon, but it’s wise to travel there before it does.