Currency movements can affect the cost of a trip. A favorable rate of exchange means that your local currency is worth more and will provide you with more buying power. Travelers whose local currency has appreciated dramatically will find that they will be able to afford much more on their vacation this year.
On the other hand, a less favorable exchange rate of exchange means that your currency will be worth less resulting in less buying power overseas. if your domestic currency has depreciated significantly you may find your options more limited. For example-use our converter to see what a £2.79 latte in London would cost you today. When the sterling was at its peak against the dollar, that cup of coffee would have cost you $5.42-a full dollar more than you would have paid for the same £2.79 latte two years earlier.
Understanding currency fluctuations will help you to take advantage of favorable rates of exchange - and spot a deal when you see one!
Can you predict where a currency is heading and spot a good travel deal? Compare your views with the experts!
Daily FX is the premier site for FX research and analysis in the industry today. Find out about the economic outlook for the countries you are traveling to and watch for opportunities to make your money go farther!