SOLVANG, Calif. – Americans heading to Europe and Americans who want to buy foreign products are in luck when it comes to purchasing power.
For the first time in a long time, the U.S. dollar equals the euro.
Economists saw this coming when the Federal Reserve raised interest rates. The dollar is up more than 14% from over a year ago. It hasn't been this strong against the euro in two decades.
Valeriy Vasiliev, of Cypress, shared his thoughts about the strong dollar during his visit to Solvang on Monday.
He said he booked his trip to the U.S. when the euro was 5% stronger. He said he may have changed his travel plans if he was booking a vacation now.
Kylee La Rue of Thousand Oaks is overjoyed. She spent the day in Solvang enjoying ice cream with a friend, but she is heading to Italy and other parts of Europe later this summer.
La Rue said she is so excited to know her hard-earned tips will go farther, now.
Economic analysts have said the Russian invasion in Ukraine and COVID-19 policies in China made people invest in the dollar.
So, while Americans complain about inflation, they could consider taking trips to Europe while the dollar is strong.