Get All Access for $5/mo

The Euro Hit a Record Low Against The Dollar, and Travelers Are Taking Advantage The currency hit its lowest value in 20 years.

By Gabrielle Bienasz

Opinions expressed by Entrepreneur contributors are their own.

The Euro slipped to its lowest value in 20 years compared to the dollar on Tuesday, according to CNBC. Analysts are noting that it could drop even further.

"Our outlook and our trades and our position on the strategist side are definitely biased towards further euro depreciation from where we are now," Luis Costa, head of Central and Eastern Europe Middle East and Africa strategy head at Citibank, told "Squawk Box Europe."

Costa thinks that the Euro could get weaker against the dollar. The USD is currently strong because currencies tend to get a boost after regulatory institutions raise interest rates, which the Federal Reserve has done three times in 2022.

The Euro has since scooted upward a bit as of later Tuesday morning, going up to 0.9968 Euros to 1 USD.

The war in Ukraine and the subsequent pain to Europe's energy markets have affected the Euro's decline, per Bloomberg. China's slower growth post-pandemic has also thrown a wrench into things, Costa told CNBC.

Another complicating factor: On Monday, gas prices for wholesale in Europe ticked up again. Russia began unannounced repair work on its most important pipeline to Germany, Nord Stream 1, the outlet added.

The current dollar to euro ratio means that it is still a good time for people in the U.S. to travel to Europe.

When it's the other way — i.e., the dollar is weaker than the Euro — it's a "total sticker shock," Ann Castagna Morin, founder of Your Dream Vacation said.

Morin added that, because of the weaker Euro, she almost got a free night on her European vacation.

Gabrielle Bienasz is a staff writer at Entrepreneur. She previously worked at Insider and Inc. Magazine. 

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Editor's Pick

Business News

How to Be a Billionaire By 25, According to a College Dropout Turned CEO Worth $1.6 Billion

Austin Russell became the world's youngest self-made billionaire in 2020 at age 25.

Living

Taylor Swift Has a Lucky Number. And She's Not the Only High Performer Who Leans Into Superstitions to Boost Confidence.

Even megastars like Swift need a little extra something to get them in the right mindset when it is game time.

Business Ideas

63 Small Business Ideas to Start in 2024

We put together a list of the best, most profitable small business ideas for entrepreneurs to pursue in 2024.

Marketing

SEO Trends You Need to Be Aware of Right Now, According to a Seasoned Pro

Navigate the future of search engine optimization to elevate your online presence and drive meaningful engagement.

Health & Wellness

4 Habits I Cultivated to Become a Healthier, More Effective Entrepreneur

By the time I hit mid-life, some of my bad habits were becoming a risk to my long-term business goals — and my health. Here's how I was able to change them.

Franchise

Guide Fellow Entrepreneurs to Success with an Exit Factor Franchise

Exit Factor franchisees play a vital role in the entrepreneurial community. As a business advisor, franchisees offer valuable guidance, solutions, and expertise to clients seeking to improve their business for a future exit.