Dollar's fall highlights importance of travel credit cards

By Mozo ·

Earlier this year, Aussies were benefiting from some of the best exchange rates ever seen when buying foreign currency, but as the saying goes, all good things must come to an end.

The Aussie dollar has weakened in the past few months and this is obviously bad news for holidaymakers and business travellers.

Speaking to the Sydney Morning Herald, chief economist at AMP Capital Investors Shane Oliver said the dollar could fall even further as the year progresses.

In February, the dollar was worth US$1.08 and almost 68 British pence, but this has now fallen by around eight per cent.

While it may seem like an insignificant amount, it soon mounts up when you are buying overseas travel money in bulk.

This problem can be avoided if people buy a prepaid travel card instead of cash.

Many packages come with an exchange rate guarantee, so if there is a sudden dip in the value of your currency before you board the plane, it will not affect you. This is a great method to use when the dollar is at its peak.

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