Currency, Exchange Rates & VAT
USD to Euro Exchange Rate Guide: What Moves EUR/USD and How to Convert
EUR/USD is the most traded currency pair in the world, and the US dollar to euro rate matters to anyone who travels, shops online, invoices clients or sends money across the Atlantic.
This guide explains how the rate is quoted (the most common source of conversion mistakes), what moves it, how it has behaved since the euro was launched, and how to make sure you get a fair rate when you convert.
Key takeaways
- EUR/USD shows how many US dollars one euro buys. To get euros per dollar, divide 1 by that number.
- Interest-rate differences between the Federal Reserve and the European Central Bank are the biggest single driver.
- The rate has ranged from about 0.82 to 1.60 since 1999 and fell below parity in 2022.
- The cost of converting is mostly hidden in the exchange-rate markup, not in the visible fee.
How the rate is quoted, and how to convert
Currency pairs are quoted as base/quote. In EUR/USD the euro is the base, so a rate of 1.10 means 1 euro = 1.10 US dollars. Most trading screens and news reports show the pair this way round.
| EUR/USD | 1 USD in EUR | 100 USD in EUR | 100 EUR in USD |
|---|---|---|---|
| 1.00 | 1.0000 | 100.00 | 100.00 |
| 1.05 | 0.9524 | 95.24 | 105.00 |
| 1.10 | 0.9091 | 90.91 | 110.00 |
| 1.15 | 0.8696 | 86.96 | 115.00 |
| 1.20 | 0.8333 | 83.33 | 120.00 |
The most common mistake
Multiplying dollars by the EUR/USD rate gives the wrong answer. $100 × 1.10 = 110 is the dollar value of 100 euros, not the euro value of 100 dollars. Divide instead: $100 ÷ 1.10 = €90.91.
Convert either way on our USD to EUR and EUR to USD pages, which use the live mid-market rate.
Why EUR/USD matters so much
According to the Bank for International Settlements' 2025 Triennial Survey, foreign-exchange trading reached $9.6 trillion a day in April 2025. The US dollar was on one side of 89.2% of all trades and the euro on one side of 28.9%, making the euro the second most traded currency and EUR/USD the single largest pair.
That depth means the pair usually has very tight spreads in the professional market, and it trades almost around the clock from Monday morning in Asia to Friday evening in New York. See when liquidity is highest on our forex market hours page.
Convert dollars to euros at the live mid-market rate, with a chart of recent moves.
Live USD to EUR rateWhat moves the USD to euro rate
- Interest rates. Money flows toward higher returns. When the Federal Reserve raises rates faster than the European Central Bank, the dollar tends to strengthen and EUR/USD falls, and vice versa.
- Inflation. Persistent inflation erodes a currency's value, but in the short run high inflation often lifts a currency because markets expect higher interest rates.
- Growth data. Jobs reports, GDP and business surveys (PMIs) shift expectations about future rate decisions.
- Risk sentiment. In global crises, investors often buy dollars as a safe haven, pushing EUR/USD down.
- Energy and trade. The euro area imports most of its energy, so energy-price shocks, as in 2022, weigh on the euro.
- Politics. Elections, budget disputes and trade tariffs on either side of the Atlantic can move the pair sharply.
| Scheduled event | How often |
|---|---|
| Federal Reserve (FOMC) rate decision | 8 times a year |
| ECB monetary policy decision | 8 times a year |
| US consumer price index (CPI) | Monthly |
| US jobs report (non-farm payrolls) | Monthly, usually the first Friday |
| Euro area flash inflation (HICP) | Monthly, around the start of the month |
For a deeper explanation of how rates are formed, read how exchange rates are calculated and our comparison of USD, EUR and GBP.
Key moments since the euro's launch
| Date | EUR/USD | What happened |
|---|---|---|
| January 1999 | About 1.17 | The euro launches as an accounting currency |
| October 2000 | About 0.82 | All-time low as US growth and rates outpaced Europe |
| July 2008 | About 1.60 | All-time high before the global financial crisis |
| 2010–2012 | 1.20–1.45 | The euro-area debt crisis caused sharp swings |
| September 2022 | About 0.95 | Below parity after Russia's invasion of Ukraine, the energy shock and rapid Fed rate hikes |
| 2025 | Above 1.15 | The euro recovered as US rate cuts were priced in and the dollar weakened |
How to get a fair rate when you convert
The mid-market rate is the midpoint between buying and selling prices in the wholesale market; it is the rate you see on FloatForex and in the news. Banks, exchange counters and card providers sell to you at a worse rate and keep the difference.
| Converting $1,000 at a mid-market rate of 0.92 EUR per USD | You receive |
|---|---|
| At the mid-market rate | €920.00 |
| With a 1% markup | €910.80 |
| With a 3% markup (common at banks and airports) | €892.40 |
- Check the live mid-market rate before you convert.
- Compare the amount you will receive, not just the fee. A "zero-fee" offer can hide a large markup.
- When paying by card abroad, choose to be charged in the local currency (euros), not your home currency. The merchant's "dynamic currency conversion" usually adds a markup.
- For larger transfers, compare a specialist transfer service with your bank.
The European Central Bank publishes daily euro reference rates around 16:00 CET. They are useful for accounting and contracts, but they are for information only and are not a rate you can trade at.
Travelling soon?
Our travel currency tips cover cash, cards and airport exchange in more detail.
Frequently asked questions
How do I convert USD to EUR?
Divide the dollar amount by the EUR/USD rate. At 1.10, $100 ÷ 1.10 = €90.91. Or use a converter that shows the rate in USD → EUR terms directly.
What is a good USD to EUR rate?
There is no fixed "good" level. What you can control is the margin: a fair offer is close to the live mid-market rate.
When is the best time to exchange dollars for euros?
Nobody can reliably predict short-term moves. To reduce timing risk on large amounts, some people convert in several smaller portions over time.
Has the euro ever been worth less than the dollar?
Yes. EUR/USD was below 1.00 in 2000–2002 and again in parts of 2022.
Sources
This guide is general educational information, not financial, tax or legal advice. Figures were checked on the date shown and can change. Read how we research and review content in our editorial standards. Source: https://www.floatforex.com/guides/usd-to-euro-exchange-rate-guide