5 places where your dollars will go further right now

27.05.2024 - 21:55 / thepointsguy.com

Compared to many foreign currencies, the value of the U.S. dollar is currently strong. This creates an ideal situation for deal-hunting Americans hoping to travel internationally.

Traveling while the U.S. dollar is strong means you can help support local economies while keeping your bank account happy. You may not see big savings on flights — unless you nab a cheap flight deal or book with points and miles. However, you'll be able to stretch your dollar at the destination itself when it comes to accommodations, shopping excursions, dining and activities.

If you haven't decided where to travel next, destinations such as Japan, Canada, Brazil and a few others are all worth considering if you're looking to get bang for your buck.

A record number of travelers visited Japan in 2024. According to the Japanese National Tourism Organization, the country saw 3.08 million foreign tourists arriving in March alone. It was the first time Japan welcomed more than 3 million tourists in a single month ever.

What's driving all of the increased travel? The favorable exchange rate for American travelers is likely playing a big part. The value of the yen has been falling for years. Earlier this year, it hit its weakest level since 1990, with the current exchange rate clocking in at around 160 Japanese yen to $1. A few years ago, it took closer to 100 yen to equal a U.S. dollar.

"Japan's been hot since last year. It just hasn't stopped being a popular destination once they opened up for tourists," Erika Richter, spokesperson for the American Society of Travel Advisors, said. "There was a boom for Japan, and that remains the same, especially now that the U.S. dollar to the yen is so favorable."

A weaker dollar in our neighboring country makes shopping and travel within Canada more affordable for American travelers. It's a great situation for those who don't want to travel far away from home. The Canadian dollar weakened to a near five-month low against its stronger U.S. counterpart, recently coming in at CA$1.37 to $1.

If you're looking for a way to save money on a trip to Canada, consider planning your trip well in advance with a travel adviser or tour company. If possible, make your purchase in Canadian dollars — it's a great way to lock in a lower price if you think exchange rates may rise in the months before your trip.

"There's a common misunderstanding that things cost more when you book with a travel adviser. They don't," Richter said. "The price of what you're buying is the same whether you book with them or not. You're just getting an enhanced level of experience, and you're getting someone who can help you make decisions that will help you stay within your budget."

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