5 destinations the weak Australian dollar can take you
Article by Roisin Kelly-Goldsmith
Jetsetters facing the weak Australian currency, that dropped 3.13% in the last week to 74 cents against the US dollar, can choose alternative destinations to Europe for better value, a Market Analyst has advised.
“It has become increasingly more expensive for Australians to travel to Europe since the beginning of the year,” said James Humpherson from easyMarkets.
Aussies just need to rethink where they holiday in the current economic climate, rather than boycott travelling altogether, Humpherson said.
He advised against travelling to Japan anytime soon, with the Yen having strengthened against the AUD by 21% in 12 months.
“Despite increased monetary stimulus introduced by the Bank of Japan, whereby interest rates were cut, the Yen has continued to improve,” said Humpherson.
Five countries where Humpherson said the AUD would be better spent instead of Western Europe and Japan are South Africa, Russia, Brazil, Argentina and Turkey.
“It’s a great time to be heading to the Rio Olympics in August,” he advised.
The Aussie dollar fell since the RBA’s decision to cut the cash rate to 1.75% last week.
Tips for Australian jetsetters to stretch each dollar further:
- Plan your holiday well ahead and keep your eye on the exchange rates throughout the year. This means you’ll be ready to lock your money into a prepaid travel card when the time is right.
- If a merchant asks you if you would like to pay in AUD overseas, say no, as you may be charged a dynamic currency conversion fee for having it converted into your home currency.
- Buy your train tickets well in advance to score early-bird prices, and look out for bargain flights once you’ve settled on travel dates.
- Don’t just pick any old travel money card to stash your hard earned cash into, as each product can vary greatly. Start by comparing rates and fees at Mozo’s travel money hub.