Still a Good Time to Travel Abroad, Despite Risks

Macro trends impact at homeDespite the security risks, this will remain a good year to consider traveling abroad because a strong U.S. dollar is lowering travel costs in most countries.

Canada and Mexico are good options close to home. And they are good examples of how much more the U.S. dollar can buy of late.

A U.S dollar buys between 1.30 to 1.40 in Canadian dollars currently. Just two or three years ago, the exchange rate was 1 to 1. In Mexico, the U.S. dollar now buys about 18 pesos—about five more than two or three years ago.

If you are adventurous, look for the best buys in Brazil and Russia—where the local currencies have weakened dramatically against the U.S. dollar in recent years.

Great Britain and Europe also are more affordable, but not as significantly as the less developed markets.

It should be safe to expect that the U.S. dollar will stay strong long enough to plan a much more affordable trip abroad than has been the case for years.

But you might not want to delay too long. The window will probably start to close at some point—particularly as fuel prices start to rise again.

If you are interested in some of the underlying numbers, check out the article at this link.

Safe travels!

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