The Commercial Real Estate Alpha Site

“The power of imagination makes us infinite.”— John Muir

➌ Euro reaches parity with dollar: The U.S. dollar and the Euro achieved parity for the first time since 2002. A historic energy crunch from Russia’s war on Ukraine and rising U.S. interest rates have pushed investors toward the dollar in favor of the feeble Euro. For U.S. travelers vacationing in Europe, the precipitous decline in the value of the Euro equates to roughly a 15% discount from the same time last year. 

Titan’s Takeaway: The flood of capital into the U.S. for the safe-haven currency and to take advantage of rising interest rates could tame inflation as a stronger dollar makes for lower import prices. However, the dollar’s rise is a double-edged sword as emerging economies holding American debt are now paying a premium.