In January 2025, the U.S. dollar was charging toward its 2022 highs, riding a wave of investor optimism as Donald Trump returned to the White House. Wall Street was betting on tariffs and domestic tax cuts to strengthen the greenback.
However, just six months later, the narrative turned on its head.
The dollar has posted its worst first-half performance since 1991, with the U.S. Dollar Index—a widely followed gauge of dollar strength on Wall Street—down more than 10% year-to-date, hitting levels not seen since September 2021.
Now, the dollar’s sharp decline is no longer just a trader’s concern.
It’s starting to bite American tourists, who are discovering that their dream vacations abroad—from croissants in Paris to cocktails in Cancun—come with a noticeably higher price tag.
Here are five favorite destinations where U.S. travelers are feeling the squeeze this summer.
Paris: That Croissant Just Got A Lot Fancier
The euro – as tracked by the Invesco CurrencyShares Euro Currency Trust (NYSE:FXE) – has gained 14% against the dollar this year, sending the exchange rate above 1.18 euros per dollar.
That means American travelers are now getting less than 0.83 euros per dollar at current exchange rates, as the dollar extended its losing streak to 10 consecutive sessions on July 1—a run not seen since 2003.
Whether it’s a rooftop view of the Eiffel Tower or a walk along the Seine, your dreamy Parisian holiday is now pricier.
In May 2024, the average daily rate …