Currency Exchange Rates: How the 2025 USD → EUR & GBP Drop Impacts Your European Home Buying Budget
- Bargain Homes Abroad
- Jul 18
- 4 min read
If you’ve been eyeing a dream property in Europe, now more than ever, every penny really does count.
Over the past nine months, the U.S. dollar has taken a noticeable dip against both the euro and the British pound. This shift—triggered in part by post-election economic uncertainty and changing interest rate expectations—has real implications for anyone hoping to stretch their dollars on European soil.
Let’s break down the trends of currency exchange rates, and what it means for your house-hunting budget.
Post-Election Slide: What the Currency Exchange Rate Charts Reveal
Since the U.S. election in November 2024, both the USD-to-EUR and USD-to-GBP exchange rates have weakened:
🇪🇺 USD → EUR
In late 2024, $1 USD bought around €0.96 at peak. Fast-forward to July 2025? It’s hovering closer to €0.92276—a 4%+ drop.
That may sound minor, but on a €150,000 home, you’d now need $3,000–$4,500 more than you did just a few months ago.
🇬🇧 USD → GBP
It’s even more stark with the pound. Last November, $1 USD got you up to £0.82. By June 2025, that’s slid to around £0.73597—a decline of nearly 10.3%.
If you had your eye on a £200,000 cottage in Scotland, it would have cost you about $243,900 last fall. Today? Roughly $271,700.
Why Currency Exchange Rates Matter When Buying Abroad
Even small currency shifts can affect:
Your total purchase price (in dollars)
Closing costs and taxes, which are often tied to local currency
Renovation budgets (those dreamy upgrades may now cost more)
Living expenses abroad once you move
When you’re transferring large sums—say, for a down payment or full purchase—those fluctuations quickly add up.
Stretching Your Dollar: Now vs. Then
Let’s compare how far $150,000 would go:
Timeframe | EUR Rate | Home Budget in EUR | GBP Rate | Home Budget in GBP |
Nov 2024 | 0.96 | €144,000 | 0.82 | £123,000 |
July 2025 | 0.92276 | €138,414 | 0.73597 | £110,395 |
Difference | — | −€5,586 | — | −£12,605 |
A difference like that could mean a smaller property, fewer renovations, or skipping that outbuilding conversion.
How to Adapt Your Currency Exchange Strategy
If you're navigating this new exchange rate reality, here are some ways to maximize your budget:
Consider less touristy regions: Your money will still stretch further in places like inland Portugal, southern Italy, or rural France.
Negotiate in USD where possible: Some sellers open to international buyers may accept offers in dollars—especially in Spain or Portugal.
Use a currency transfer service: Partners like Moneycorp often offer better exchange rates than traditional banks, along with the ability to lock in rates ahead of a large transfer—giving you more control (and potentially more euros or pounds) for your dollar.
Buy now, renovate later: Secure the property while it's available, then stagger renovations when rates shift or your budget rebounds.
Stay flexible on timing: If you're not in a rush, monitor exchange rates weekly. Even a slight improvement can mean thousands saved.
Timing (Still) Is Everything
The dollar remains historically strong compared to pre-2020 levels, but the recent dip is a reminder that timing matters—especially when buying abroad.
If you’re serious about purchasing a home in Europe this year, now’s the moment to get strategic. Even a 1–2% shift in the exchange rate can be the difference between landing your dream property—or having to scale back.
A Strategic Approach to Currency Management in 2025
With the dollar weakening against both the euro and the pound since late 2024, being intentional about your currency strategy is more important than ever. Exchange rates can shift quickly—impacting everything from your purchase price to your renovation budget.
By using tools like forward contracts, you can lock in favorable rates, reduce uncertainty, and plan your European home purchase with clarity and confidence.
Working with a foreign exchange expert ensures you’re not navigating these shifts alone. With the right guidance and strategy, you can take advantage of market opportunities and protect your budget—turning a dream into a financially sound decision.
Partner with Moneycorp for a Smarter Purchase Abroad
Buying property in Europe is a major milestone—and having a trusted currency partner can make all the difference. Moneycorp offers competitive rates, expert guidance, and tailored solutions to help you manage your money wisely when transferring large sums internationally.
Whether you're just beginning your search or preparing to make an offer, now is the time to speak with Moneycorp about building a currency strategy that supports your goals.
Reach out to Moneycorp today and take the first step toward securing your ideal property in Europe—with more confidence and fewer financial surprises.
Want Help Finding the Best Deals—Even in a Shifting Market?
Exchange rates aren’t the only way to protect your budget. Finding the right property at the right price is just as important.
That’s where BHA Plus! comes in.
Every week, we hand-pick the most beautiful, budget-friendly homes across Europe—all under €300K—and send them straight to your inbox. No endless scrolling, no guesswork—just curated listings that help you stretch your budget further, even when the exchange rate isn’t in your favor.
✅ Exclusive properties before they go public
✅ Curated for charm, character, and location
✅ All under €300K (so you stay on budget)
Ready to save time and find your dream home abroad?
👉 Join BHA Plus! today for instant access to this week’s issue.
Affiliate Partner Disclosure
We may earn a commission if you choose to use Moneycorp’s services through the links provided in this article. We only partner with trusted companies that align with our commitment to providing value to our readers. Working with Moneycorp can help you optimize your budget and make the most of your European property purchase, and we’re proud to recommend their services.
Comments