American travelers going abroad this summer will find their money buys more in some unexpected countries, including Japan and Australia.
It’s the backpacker’s call to India, the sunseeker’s attraction to Mexico, and the digital nomad’s drive to get to Thailand: Go where the dollar buys more.
The evergreen budget travel strategy is getting a boost this summer: The dollar has surged against a number of foreign currencies, including the Japanese yen, thanks to high interest rates offered by the Federal Reserve — attracting foreign investment, which bolsters the dollar.
“A destination’s weaker currency spells greater value for U.S. tourists,” said Erina Pindar, the chief operating officer and managing partner at SmartFlyer, a global travel agency based in New York City.
“This economic advantage could make far-flung bucket list destinations in Asia, such as Indonesia, Vietnam and Japan, or in South America, like Peru, Argentina and Chile, more accessible than ever before,” she added.
Distant destinations are usually more expensive to fly to, which, along with the physical toll of jet lag, helps make the case for the country’s North American neighbors, Canada and Mexico, where the exchange rates have long favored the dollar’s buying power.
But this year there are some new contenders with attractive exchange rates to consider, including the following destinations.
