Here’s a big 2024 travel trend that many Americans might not fully appreciate — the U.S. dollar is strong. That means your dollars give you extra buying power when you travel to other countries.
Some other countries’ currencies are weaker (cheaper) vs. the dollar than they have been in many years — so visiting these other countries and exchanging your dollars for local currency is like getting a built-in discount on your international vacation.
The strong U.S. dollar might not help you get a cheaper airline ticket, but it can make everything else more affordable at international vacation destinations.
Featured offer: save money while you pay off debt with one of these top-rated balance transfer credit cards
Let’s look at a few countries where the U.S. dollar is especially strong right now — and how to combine a strong dollar with travel credit cards to get a cheap international vacation.
1. Canada (1 Canadian dollar = $0.73)
As of June 29, 2024, one Canadian dollar is worth about $0.73. That means a Canadian restaurant meal priced at CAD $20 is equal to about $14.60. And in the past few years since May 2021, the Canadian dollar has declined by about 11.78% against the U.S. dollar — so a visit to Canada keeps getting cheaper for American travelers.
I personally visited Montreal in November 2022, and I was amazed at how affordable everything felt, and how good the food was, how easy the public transit was, and how friendly the people were. Visiting Canada can be a great choice for an international vacation, especially if you want to avoid the jet lag of a transoceanic flight.
2. Mexico (1 Mexican peso = $0.0545)
As of June 29, 2024, 1 Mexican peso is worth about $0.055 — so $1 buys you about 18 Mexican pesos. Since the start of 2024, the Mexican peso has declined by about 7.46% against the dollar. This means your Mexican beach resort vacation might have just gotten 7.46% more affordable.
3. Europe (1 Euro = $1.07)
The euro is often one of the stronger currencies against the dollar, but as of June 29, 2024, the Eurozone has gotten a bit cheaper: 1 euro is worth about $1.07. And since the start of 2024, the value of the euro has declined by about 2.86% against the dollar, which makes European hotels, restaurants, and other purchases a little more affordable for American travelers.
4. Japan ($1 = 160 Japanese yen)
Have you ever wanted to visit Japan? 2024 could be your best chance — Japan was closed to international tourists for a long time during the pandemic, but it has reopened for visitors, and the Japanese yen is historically cheap.
As of June 29, 2024, $1 buys about 160 Japanese yen, and the U.S. dollar has surged in value against the yen in the past few years. In the past 12 months, the dollar has gained 11% against the yen, and has gained 49% in the past five years. That means Japanese restaurant meals, hotels, tours, and souvenirs are basically 50% cheaper for American visitors than they were five years ago.
5. United Kingdom (1 pound = $1.26)
The United Kingdom’s currency, the British pound sterling, is another currency that is usually stronger than the dollar. As of June 29, 2024, 1 British pound equals about $1.26 — so a 10-pound fish and chips dinner in London would cost about $12.60.
But in the past few years, it’s gotten cheaper for Americans to visit London, Scotland, and other great destinations in the U.K. On May 31, 2021, the pound was worth $1.4188, and since then it has lost about 10.85% of its value against the dollar — so Americans are now getting about a 10.85% discount on U.K. vacations, compared to the price in 2021.
How travel rewards credit cards can help
If you want to travel to other countries, travel rewards credit cards are a great way to do it. By using your everyday spending to earn reward points, you can then redeem those points for cheaper flights, hotels, and more. Some of the best travel rewards credit cards have special partnerships with airline frequent flyer programs, including major U.S. airlines and international airlines, so you can turn your points into frequent flyer miles.
For example, the Chase Sapphire Preferred® Card lets you transfer your Chase points to United MileagePlus® and the frequent flyer programs of several international airlines like Air Canada, Air France, British Airways, Iberia, Singapore Airlines, and more.
What if you could get a (nearly) free flight with credit card points, and then get a built-in “discount” on everything you buy with your strong American dollars while you’re in another country? Sounds like a win-win to me.
In the past few years, and even in the past few months, the U.S. dollar has gotten significantly stronger against many international currencies. That means international travel is now cheaper for Americans — your buying power when visiting other countries might be 10%-50% more than it was just a few years ago. The best travel rewards credit cards can also help you earn cheap flights and free hotel stays.
Alert: our top-rated cash back card now has 0% intro APR until 2025
This credit card is not just good – it’s so exceptional that our experts use it personally. It features a lengthy 0% intro APR period, a cash back rate of up to 5%, and all somehow for no annual fee! Click here to read our full review for free and apply in just 2 minutes.
