Dollar dip highlights importance of travel cards

Mozo

Monday 08 October 2012

The dollar is going through a decidedly rocky spell at the moment and this should act as a lesson to travellers from Australia.

According to the Sydney Morning Herald, the dollar has fallen to a three-month low against the US equivalent.

The currency is now trading at US$101.65 – down from US$102.51 at the end of last week – and Westpac New Zealand senior market strategist Imre Speizer told the news provider that the Aussie dollar could fall even lower before bouncing back.

Holidaymakers from down under have been in a strong position when booking foreign trips in recent years.

The strength of the currency meant that people were receiving some of the best exchange rates seen for a long time, but it seems that things are suddenly taking a turn for the worse.

This highlights the importance of travel credit cards that enable tourists to "lock in" the rate of exchange at the time of purchase.

In doing so, Aussies have peace of mind that they will receive a strong rate even if the value of their home currency nosedives by the time they board the plane.

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