The U.S. Dollar Is Weakening—Here’s How Travelers Can Plan Trips Smartly, According to Experts

The energy of the U.S. greenback is risky, falling for a 3rd day towards a number of currencies on May 21. American tariffs are anticipated to additional take a toll on U.S. foreign money values. According to European nonprofit group CEPR, which supplies policy-relevant analysis based mostly in financial idea, prevailing idea holds that import tariffs ought to place upward strain on the tariff-imposing nation’s foreign money.

“If global trade is largely invoiced in a dominant currency such as the U.S. dollar,” Jonathan Hartley and Alessandro Rebucci wrote in Tariffs, the Dollar and Equities: High-Frequency Evidence from the Liberation Day Announcement, “the response should be amplified, leading to an even sharper initial appreciation of the home currency.”

That mentioned, President Donald Trump’s tariff insurance policies are a significant factor within the fall and fluctuation of the U.S. Dollar Index, which had tumbled to 97.9 in late April—the bottom in barely greater than three years. (At the time of publication, the greenback index is at 99.49 amid the three-day decline.) At the identical time, the Euro and the Japanese yen strengthened towards the greenback, experiences Reuters.

What precisely does this imply for vacationers making their summer time plans?

The 2025 Bankrate Summer Travel Survey discovered that lower than half of Americans even have summer time journey plans, with 65 % of that quantity citing affordability as the primary concern. Of these surveyed, simply 46 % plan to journey in any respect, with 38 % selecting home places and 15 % going worldwide with a margin of overlap.

Moreover, the survey discovered {that a} quarter of U.S. adults aren’t planning any summer time trip in any respect.

“It’s getting even more expensive,” Uri Kogan, a frequent traveler based mostly within the San Francisco Bay Area, mentioned. “We just went to London last week, so it was on my mind.”

If you’re seeking to journey, Bankrate senior business analyst Ted Rossman mentioned to ebook sooner reasonably than later. “It also pays to zig when others zag,” Rossman mentioned within the survey. “For example, think about visiting a destination during its shoulder season or offseason. Take an early flight or a late flight or a connecting flight—or fly midweek.”

In addition, if you happen to’re making summer time journey plans, you’re going to wish to take the volatility of the U.S. greenback under consideration earlier than going into debt for that seashore trip. While nobody really is aware of whether or not circumstances will enhance or deteriorate, many specialists are leaning towards the latter. That’s why it’s going to be vital—as Rossman suggests—to shore up funds on the sooner finish.

However, Rossman mentioned don’t let all this deter you from taking time to your self. “Don’t let your vacation time go unused,” he mentioned within the survey. “If nothing else, take some time off to relax and recharge at home.”