Money is weird. One day you’re feeling like a king because your vacation to Paris is basically on sale, and the next, you’re staring at a currency app wondering where all your buying power went. Honestly, if you've been tracking the exchange rate lately, you know it’s been a total rollercoaster.
So, let's get right to it: is the USD worth more than the euro right now?
Technically, as of mid-January 2026, the answer is no. A single U.S. dollar currently gets you about 0.86 euros. In plain English? The euro is still the "stronger" unit of currency on paper. You need more than one dollar to buy one euro.
But that doesn't tell the whole story. Not even close.
What’s actually happening with the dollar?
If you look back a few years—specifically 2022—the dollar actually did something it rarely does. It hit "parity." That’s the fancy finance word for when 1 dollar equals 1 euro. For a brief window, the USD was actually worth more than the euro.
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Fast forward to today, and we’re seeing a massive shift. Major banks like UBS and ABN AMRO are currently betting against the dollar. UBS recently put out a report predicting the euro will climb to $1.20 soon. They’re pointing at some pretty messy stuff in the States: a cooling labor market, stalling progress on fighting inflation, and—this is a wild one—an ongoing Department of Justice investigation involving Federal Reserve leadership.
When there’s drama at the Fed, the dollar gets nervous. Investors start looking for the exit.
The Euro's surprise comeback
Europe isn't exactly "winning" the economic Olympics, but it’s holding steady. While the U.S. is dealing with political friction and high interest rates, the Eurozone has managed a "soft landing."
Inflation in Europe finally hit that sweet spot of 2% at the end of 2025. The European Central Bank (ECB) has basically parked interest rates at 2% for the foreseeable future. It’s boring, and in the world of currency trading, boring is usually good.
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- Growth: The EU is expected to grow by about 1.4% this year.
- Spending: Germany is finally opening the wallet for infrastructure and defense.
- Investment: Analysts at Goldman Sachs are actually telling people to look at European stocks because they’re "cheap" compared to the U.S. right now.
When big institutional money moves from New York to Frankfurt or Paris, they have to sell dollars and buy euros to make those investments. That demand pushes the euro's value up.
Why the "is the USD worth more than the euro" question is tricky
You’ve gotta realize that "worth more" is a relative term.
If you're an American tourist, a "strong" dollar is great. It means your coffee in Rome costs $4 instead of $6. But if you’re a massive company like Apple or Microsoft, a strong dollar actually hurts. Why? Because when they sell an iPhone in Europe for 1,000 euros, and the dollar is strong, that 1,000 euros converts back into fewer dollars on their balance sheet.
Right now, the dollar is in a bit of a "down but not out" phase. It’s still the world's reserve currency, meaning 57% of the world’s central bank reserves are held in greenbacks. But that’s down from 66% a decade ago.
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Countries are getting cagey. They’re buying gold. They’re looking at the euro. They’re even looking at the pound.
Reality check: Parity isn't coming back tomorrow
Could we see the dollar beat the euro again? Sure. If the U.S. economy suddenly catches a second wind or if the war in Ukraine takes a turn that scares European markets, people will run back to the dollar as a "safe haven."
But honestly? Most experts, including those at J.P. Morgan, are leaning bearish on the dollar for 2026. They think the "AI supercycle" is helping U.S. stocks, but it’s not necessarily helping the currency as much as people expected. The U.S. is spending $2 trillion on AI, while Europe is only spending about $300 billion. That's a huge gap, but it also means the U.S. is taking on way more debt to fund that growth.
What you should actually do about it
If you’re planning a trip or thinking about moving money, don't wait for the dollar to overtake the euro again. It might happen, but the current trend is headed the other way.
- Lock in rates: If you have a trip to Europe planned for later this summer, consider buying some euros now. Most analysts expect the dollar to weaken further toward that 1.20 mark.
- Watch the Fed: Keep an eye on the Federal Reserve’s meetings. If they start cutting rates faster than the ECB, the dollar will drop like a stone.
- Diversify: If you're an investor, don't keep everything in USD. The era of the "unstoppable dollar" is hitting some serious speed bumps.
The exchange rate is basically a giant popularity contest between countries. Right now, the U.S. is dealing with some internal drama, and Europe is looking surprisingly stable. That's why, for now, the euro remains the more "valuable" currency unit.
Keep your eye on the 1.16 to 1.18 range. If the euro breaks past that, we’re looking at a whole new ballgame for 2026.