The U.S. dollar has
fallen 9%
This year, regrettably, it’s causing higher expenses for American travelers seeking deals abroad. Following President Donald Trump’s imposition of tariffs on goods coming into the U.S., the dollar has weakened over recent weeks compared to various key currencies such as the euro and British pound.
When the US currency is robust, traveling can assist in bolstering local economies without draining your finances too much. You might not notice significant discounts on airfare (unless you manage to secure one).
cheap flight deal
or book with
points and miles
), yet you’ll have more purchasing power once you arrive for expenses like lodging, shopping trips, meals, and various activities.
If the dollar weakens, your purchasing power decreases when traveling internationally, leading to higher expenses. However, this presents an advantage for visitors from overseas, as their money will stretch farther in the U.S.
You might consider skipping an expensive European vacation this year because of the weak dollar, and opt for a more budget-friendly location like Japan, Canada, or Brazil to maximize your spending power.
Japan
An advantageous currency conversion rate for U.S. visitors has contributed to an unprecedented increase in tourist arrivals in Japan over recent years. As reported,
Japanese National Tourism Organization
In March alone, the nation welcomed nearly 3.5 million international visitors, marking a rise of 13.5% from March 2024.
For many years, the value of the yen has been declining steadily. Not too long ago, one U.S. dollar was equivalent to about 100 yen. Recently though, we’ve seen the yen regain some strength, bringing the exchange rate down to approximately 144 yen per dollar. Nonetheless, this remains quite favorable when compared to where things stood several years back.
Canada
A depreciated currency in our adjacent nation is aiding in keeping both shopping and traveling domestically more attractive.
Canada
It’s more budget-friendly for U.S. tourists. This is ideal for people not looking to venture too far from their homes. Recently, the exchange rate has been noted at 1.39 Canadian dollars per US dollar.
If you want to cut costs on your journey to Canada, it’s advisable to plan ahead using assistance from a travel consultant or tour operator. Whenever feasible, buy your tickets directly in Canadian currency—this can help secure a better rate should exchange rates increase closer to your departure date.
“A prevalent misconception is that booking through a travel advisor increases costs. This isn’t true,” says Erika Richter, a representative for the Travel Association.
U.S. Association of Travel Advisers
He said, “The cost of what you’re purchasing remains identical regardless of whether you book through them or not. What changes is the added layer of service, providing you with support to make choices that keep you aligned with your financial limits.”
Related:
Reserving inexpensive flights to and within Canada using Aeroplan
Brazil
Brazil has traditionally been seen as an inexpensive option for American tourists. In late 2024, the Brazilian real significantly declined, losing over 20% of its value compared to the US dollar. Although it has started recovering lately, the current exchange rate stands at approximately 5.71 Brazilian reais per USD$1, which means deals can still be found. To provide some perspective, ten years back, the exchange rate hovered around 2.21 reais for every USD$1.
The nation is seeing unprecedented levels of tourism, with the
tourism board reporting
In the first quarter of this year, 3.7 million international tourists visited — marking a rise of 47.8% over the comparable timeframe last year. The Brazilian government anticipates that Brazil will become South America’s top tourist draw by 2027, with expectations of welcoming around 8.1 million international visitors annually.
By surmounting various obstacles, we aim to establish Brazil as a appealing travel spot for a discerning international audience,” stated Celso Sabino, the minister of tourism, in a release. “We remain committed to achieving this objective by 2027 through attracting numerous overseas visitors who will create employment opportunities and stimulate economic growth within our nation.
Individuals traveling from the U.S., Canada, and Australia will face an additional expense when planning trips to Brazil as of April 10; they now require a visa for admission. The application process for this electronic visa can be completed online.
the Brazilian government-authorized website
The price is $80.90 per individual, with the visa allowing for stays of up to 90 days within a single year period.
Related:
15 destinations requiring a visa or Electronic Travel Authorization for U.S. passport holders when traveling
Other destinations to watch
Colombia
Richter also suggested
Colombia
As a perfect choice for American tourists seeking maximum value for their money, Colombia currently offers an exchange rate of 4,323 pesos per US$1.
One of the places where we notice travelers keen to venture more is Colombia,” she stated. “The country boasts abundant cultural wealth, amiable residents, and your money stretches quite a bit due to favorable exchange rates for Americans.
However, bear in mind that the U.S. Department of State presently
suggests that visitors think twice about traveling to
Specific regions of Colombia. Make sure to meticulously review your travel schedule before finalizing your arrangements.
South Korea
South Korea
Another location where the currency has markedly depreciated is South Korea. This year, the South Korean won hit historic lows relative to the US dollar, with recent reports indicating an exchange rate of approximately 1,427 won per USD 1.
Cities such as Seoul and Busan in South Korea provide numerous budget-friendly and even cost-free experiences for tourists. Travelers have the opportunity to explore historical sites and cultural landmarks including museums and temples, along with scenic coastal areas and mountainous regions nearby. Additionally, the nation boasts an inexpensive public transportation network which facilitates convenient and economical travel within the area.
Domestic airfares or those to neighboring Asian nations may also remain reasonably priced when flying with low-cost carriers like Air Busan and Jeju Air.
Methods to capitalize on an advantageous currency conversion rate
Regardless of where your global adventures lead you, you can extend the value of your money by considering these three pieces of advice:
-
Utilize a credit card with
no foreign transaction fees
Card issuers may charge up to an additional 3% for international credit card transactions. Nonetheless, various cards like the
Chase Sapphire Preferred® Card
(see
rates and fees
), the
Ink Business Preferred® Credit Card
(see
rates and fees
), and
The American Express Platinum Card®
(see
rates and fees
) provide no charges for foreign transactions as an advantage, allowing you to keep more cash on hand. - Utilize a checking account that doesn’t charge for foreign transactions when using an international ATM. Although paying with a credit card is usually recommended because of the travel rewards you can accumulate, there may be times when you require cash overseas.
-
Always use the local currency for payments. Reject offers to convert currencies.
“dynamic currency conversion”
When using your credit card to make purchases or taking out cash from an ATM, it might appear as though merchants are making things easier by letting you pay in U.S. dollars. However, this usually comes at the cost of receiving unfavorable exchange rates for the simplicity provided.
Bottom line
U.S. travelers can identify upcoming budget-friendly travel spots by monitoring market trends and currency exchange rates, even with a declining dollar.
Related reading:
- Top credit cards without foreign transaction fees
- Here are the optimal moments to purchase an international ticket.
- Organizing an overseas journey? Redeem your points and miles for reservations on these sought-after international flights.
- 8 Expectations When Traveling Abroad From the U.S.
To view the rates and fees for the Amex Platinum, please click.
here
.
Editorial disclaimer: The views expressed here belong solely to the author and do not represent the opinions of banks, credit card issuers, airlines, or hotels. These organizations have not reviewed, approved, or supported this content in any way.
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