If you’re trying to nail down plans for a summer trip, it might feel challenging to swing, considering how high flight prices are expected to soar. However, if you’ve always wanted to travel to Europe, now might be the time as the euro’s value steadily declines to be on par with the dollar.
According to the New York Times, the euro’s value fell to $1.035 and is expected to reach a one-to-one ratio by the end of the year. The last time the euro fell to a one-to-one ratio with the dollar was in 2000. Nineteen countries share the currency.
The Ukrainian-Russian war prompted European countries to cut oil imports from Russia and disrupted trade channels, causing soaring inflation. Russia cut off gas supplies to Poland and Bulgaria — if that trend were to continue in other parts of the region, the expected outcome would be a recession. Viraj Patel, a global macro strategist for Vanda Research, told the Wall Street Journal that the war in Ukraine has caused the likelihood of parity between the euro and the dollar to increase from 30 percent to 75 percent.
However, not everyone thinks the euro and dollar will reach that one-to-one ratio. The euro quickly bounced back from achieving the same levels in 2017. So if you’re looking to take advantage of the declining value of the euro, do it now before it’s too late.