Market Decline Heralds Better Exchange Rates for International Travelers
Market Decline Heralds Better Exchange Rates for International Travelers
While concerns about widespread economic weakness sends stock indexes down and people across America wonder how many notches are left on their already tight budget belts, the value of the U.S. dollar has risen, causing better exchange rates for international travelers.
The U.S. dollar has been gaining on international markets over the last three months, says Bruce Beattie, a partner in Foreign Currency Exchange Services (FCES) in Birmingham, Michigan. Because the current rates are so favorable to Americans, the company has seen a steady rise in people buying foreign currency now, even though they may not be traveling until 2009. Beattie cites several clients buying Australian dollars a bit at a time as they prepare for travel in January 2009, and others exchanging dollars for euros in preparation for trips as far out as May, 2009.
“Solo travelers, corporate executives, and trade mission groups are keeping a close eye on exchange rates,” Beattie says. “They’re learning that the current strength of the U.S. dollar offsets other rising travel costs, and they’re making the decision to buy now rather than later.”
The upward trend in the value of the U.S. dollar has been gradual but steady. According to posted Interbank rates on August 6, 2008, the Euro was valued at $1.55. By November 13, it had dropped to $1.25. The British Pound went from $1.96 to $1.53 in the same period. The Australian Dollar has fallen from $0.92 to $0.65.
Beattie, whose company have over 27 years experience in foreign travel and currencies, cautions travelers to practice due diligence by seeking out credible, independent exchange services. FCES offers better rates than airport exchange desks, assists clients with travel and security advice, and provides emergency services to travelers who lose cards or cash while overseas.
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For more information on Foreign Currency Exchange Services, contact Bruce Beattie at 248-594-6655, or visit www.FCEServices.com. Foreign Currency Exchange is located at 251 E. Merrill Street, Suite 238, Birmingham, Michigan 48009. Email: Bruce@fceservices.com.
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The dollar is getting stronger? WOW - that's great news! What about the Canadian dollar, Bruce? If any of us are planning a trip to Montreal, Quebec, or Toronto, is this a good time to exchange some funds to stash away until we go?
What are one or two other "tips" you have for international traveling?
Thanks for this post - it brings me a bit of confidence in the big picture venue of the world economy.
Make your day magnificent!
Linda
Thank you for the reply, Linda.
Yes, the U.S. dollar should continue to strengthen against most currencies, including the Canadian dollar. According to the posted Interbank rates on August 6, 2008, the Canadian dollar dropped from C$1.04 per U.S. dollar to C$1.23 on November 13. Analysts are predicting that it will continue to devalue to as low as C$1.30 by the end of the year.
The “loonie” has depreciated partly because crude oil has dropped under $55.00 (as of November 13) and orders for natural gas has declined by over 6%. Crude oil and natural gas make up almost 20% of Canada’s export revenue. Other factors affecting the declining Canadian dollar: new orders for factory goods fell for the second straight month and Canadian home sales fell 14% in October.
If you are planning to travel to Canada or overseas, it is a good idea to exchange currency before departing. This will give you some cash for food, taxis and other incidentals without having to find an ATM immediately after your arrival.
Do not forget to contact your credit, debit and ATM card companies before you leave. Inform them that you may be using your cards and ask what type of conversion fees they will charge as well as what your cards’ limits may be.
Please contact us with any questions.
Bruce Beattie