It’s been several decades since the Euro was launched at roughly one to the Dollar. For years after that, the US Dollar seemed destined to trade at a lower value, despite being the world’s most popular currency for trade and investment.

The very fact that dollars were so abundant, and freely available in all corners of the world, helped to keep the currency weaker than its European rival. It was no secret that America could print money at will, effectively taxing the billions held offshore. And in this way, the Euro made steady gains against USD. Until the global financial crisis of 2008 upset the chessboard and reset the game.

Everything changed when interest rates evaporated and capital sought safe refuge, with the Dollar consolidating its position as the global reserve currency. After 20 years, the Euro briefly touched parity to the Dollar in 2022, before bouncing back and settling into a range around $1.10.

But years of unexpectedly good performance by the American economy, coupled with conflict in Europe and the aftermath of regional shocks and political turmoil, have once again forced the Euro below par. And this time it’s going to stay there. Spiraling debt and right-wing populism are making EU investors nervous.

As global wealth and power have shifted to the East, with the rise of China and India, so has the decline been felt on both sides of the Atlantic, but more so in the Eurozone. EU’s green transition relies heavily on materiel from south and east Asia, funneling Euros eastwards. Britain and North America seem to be more adaptable and resilient, and trans-Pacific trade has never been brisker.

But wait, there is a silver lining for Europe: American tourists will be arriving in droves this season – they’re getting so much more Euro bang for their buck!