Information checked: October 3, 2026 · By the Travel Money Check™ Editorial Team
If you are planning a trip to Europe, the U.S. dollar is giving American travelers more purchasing power against the euro than it did just a few weeks ago.
Reuters reported that the dollar was headed for its fourth consecutive weekly gain against the euro, while the euro remained near lows not seen since May 2025. That can help travelers—but the market rate shown in financial headlines is only the beginning of what you actually pay.
What the exchange rate means for a traveler
The European Central Bank published a reference rate of €1 = $1.1225 for October 2, 2026. On September 11, its reference rate was €1 = $1.1592.
Using those rates only as an illustration, $1,000 would correspond to about €891 at the October 2 reference rate, compared with about €863 at the September 11 rate. That is roughly €28 more purchasing power on a hypothetical $1,000 conversion.
But you should not expect a bank, credit card, ATM, airport exchange counter, or merchant to give you the ECB reference rate. The ECB says its reference rates are published for informational purposes and strongly discourages their use for transaction purposes.
Your actual cost can include an exchange-rate spread, foreign-transaction fee, ATM charge, withdrawal fee, service fee, or dynamic currency conversion markup.
A stronger dollar does not mean everything in Europe is cheaper
Currency movements are only one part of a travel budget.
Eurostat estimated that euro-area annual inflation reached 3.8% in September, up from 3.2% in August. Energy prices were estimated to be 18.8% higher than a year earlier.
Travelers can therefore experience two things at the same time: the dollar may buy more euros, while local prices for hotels, transportation, dining, fuel, and other services may also be rising.
The practical question is not simply, “Is the dollar stronger?” It is: How much will this particular purchase actually cost after the exchange rate and every fee are included?
Do not give your currency advantage back at checkout
A favorable exchange rate can disappear quickly if you accept an expensive currency-conversion option.
A restaurant, hotel, shop, or ATM in Europe may ask whether you want the transaction processed in euros or converted immediately into U.S. dollars. That dollar option is usually called dynamic currency conversion, or DCC.
Seeing the amount in dollars may feel more comfortable, but the conversion provider chooses the exchange rate. That rate can include a markup. Choosing euros instead normally allows the card network and your card issuer to handle the conversion, although your issuer may still charge a foreign-transaction fee.
Read our guide to dynamic currency conversion before pressing the payment button.
Four things to check before spending abroad
- Check the market reference rate.
- Identify the exchange rate actually being offered.
- Identify every percentage fee and fixed fee.
- Compare the final amount you will pay or receive.
A favorable currency market gives you an opportunity. Your payment method determines how much of that opportunity you actually keep. See How Travel Money Check™ works and use the provider-fee comparison tool when available.
What should travelers do now?
There is no need to predict the currency market perfectly. Use the current reference rate as a benchmark, then check your card’s foreign-transaction fee, your bank’s international ATM charges, and the rate displayed before approving a conversion.
If an overseas terminal asks whether you want to pay in dollars or the local currency, slow down and compare the numbers before choosing. Differences that look small on one purchase can add up across hotels, meals, transportation, shopping, and ATM withdrawals.
Bottom line
The U.S. dollar is stronger against the euro than it was several weeks ago, which can benefit American travelers heading to Europe. But the exchange rate is not the final price.
Inflation, exchange-rate markups, DCC, foreign-transaction fees, ATM fees, and other charges can reduce or eliminate some of that advantage.
Travel Money Check™ helps travelers look beyond the advertised exchange rate and understand the estimated total cost before completing an international transaction.
This article provides general educational information, not individualized financial, legal, tax, or travel advice. Exchange rates and fees change. Verify current rates and provider terms immediately before transacting.
Sources
- European Central Bank: euro foreign exchange reference rates
- Eurostat: September 2026 euro-area inflation flash estimate
- Reuters: dollar heads for fourth straight weekly gain versus euro
- Travel Money Check™ methodology, sources, and corrections
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