How the dollar's decline affects us

In four months, when it seemed as though the euro and the dollar would be valued at 1 to 1, the dollar sank to nearly 1.15 euros. Although it may seem far away, it has several implications for us, and we can say that for once we have gained purchasing power.

First, tourism. International travel to much of the world is done in dollars or in currencies that are closely tied to their value. Fortunately for us, with a strong euro in our destination countries, everything will be cheaper as long as we pay in the local currency. To give you an example: during Easter, the vast majority of Asian and South American currencies lost between 5 and 10% of their value against the euro. Those who didn't exchange all their money at the beginning of their trip are on the winning side.

We'll also notice this in our shopping. Despite the imposition of tariffs whose final implementation date is unknown, buying American products costs us 15% less than it did a few months ago, whether we're traveling or shopping online. But the situation will be uncertain in the coming months if the EU ultimately imposes tariffs on American products as well.

And there are the investments. Although the American stock market has fallen in recent weeks and It is already recovering as we expectedLosses are offset by the currency exchange rate if we hold the shares in dollars. If we bought the shares when the exchange rate was close to 1:1, we paid 100 euros in dollars for one share. If the share now drops to 90 dollars, when we convert it to euros, it will still be our original 100 euros.

Looking ahead to the coming months, we can expect this weak dollar trend to continue as long as Trump doesn't back down on his tariff policy. However, the dollar isn't expected to devalue much further, but rather remain at its current values.