The Dollar is Flying High Internationally
Now is the best time to take a vacation overseas! In short: the American Dollar is gangbusters compared to the Euro, the British Pound and the Japanese Yen.
WHAT HAS HAPPENED? Those afformentioned currencies have fallen like a rock in comparison to the U.S. dollar. Here is how they compare:
The Euro = $1.13 – A little over a year ago one euro was worth $1.67. That means the euro, as of today, has lost almost a third of its value. And the value of the euro continues to fall. Or, to put it in positive terms, the value of American money in Euope continues to rise.
Pound = $1.54 – Two years ago it was about $1.90 U.S. for one of the U.K.’s pound sterlings. That means just a little less than a 20-percent increase in the value of a dollar spent on a trip to Great Britain.
Yen = down 66-percent – Comparing currencies with Japan is complicated, but they win the prize for probably the most striking change in the value of the dollar since 2011. Economic experts estimate that a U.S. dollar goes three times as far as it did four years ago.
WHAT DOES IT MEAN? Your dollars will get you more than they would if our currency had maintained the same rate of exchange from the past. It means hotels will cost less, car rentals will cost less, transportation will be less, meals will cost less, you will get more of everything for less in comparison to what you would have been able to get at any time the recent past . . . . if you have American money to begin with.
BIG TIP: Forecasters think that the value of the dollar is going to continue to rise in comparison to the above currencies, so you will be able to get the most up-to-date rate by using a credit card. Plastic may not be perfect, but it will get you the exact exchange rate at the moment you use that card. It also means that when getting local currency, you will get the precise exchange rate at that very second by using an ATM machine. Just remember, most ATMs exact a fee per usage; therefore, it’s better to get as much as you can at one time, rather than using the machine several different times.