by Mark Albert
Did you know most countries are on sale to US travelers right now? It’s by a historic amount, actually. So exactly what is putting on this door-buster sale? The good ‘ole greenback—the United States dollar.
Right now, after the US presidential elections, a long period of low interest rates, and inflation that’s in check, the dollar is enjoying historically high strength and buying-power. How strong?
In January, the dollar index hit a 14-year high—the highest level since December 2002, Reuters reported.
The dollar hasn’t bought you this many euros, for example, since 2003 — nearly 14 years ago. The euro hit a low of 1.0364 against the dollar on Dec. 15, 2016—the lowest level since August 2003, according to CNBC. Some foreign exchange watchers are even predicting it will hit parity — one for one — in 2017.
“A lot of people figure the door has been opened here for parity on the euro,” Carl Forcheski, director of corporate FX sales at Societe Generale, told CNBC in that article.
A 20 Euro currency paper note and some change
Strong Dollar Gaining Ground
And the discounting goes on. After the Brexit vote in June 2016, when a slim majority of the British people stunned the world by voting to leave the European Union, the dollar reached its most competitive position against the British pound in 30 years, as sterling fell to $1.3342, MarketWatch reported. The pound has since rebounded slightly.
But the strength of the greenback means that everything you buy in a long list of countries is essentially 20%-25% off compared to earlier this decade. What a bargain!
So if you’ve ever wanted to wander through a bamboo forest in Japan, stand beneath the Eiffel Tower in Paris, or wander under the arches of the Roman Coliseum, pack your bags ASAP. Because like all good sales, this one won’t last forever.
Are you planning to take advantage of the strong dollar? Let us know in the comments section below.
To start looking for deals right now, check out our Deals page.
And check out our advice on How to Save Money Withdrawing Money Abroad.
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