The current exchange rate of foreign currencies to the US Dollar
Traveling to international countries can be expensive and foreign exchange rates could be a major factor that might influence your decision regarding a destination. That is why before you plan your trip, you should check the current spot rate for your country’s currency. The current column reflects the spot rate of exchange for USD to foreign currencies at the 3rd quarter of 2016.
So which countries look like they would represent a great bargain in terms of the USD? In North & South America: Mexico, Argentina and Uruguay look like they would represent a good bargain. Bargains in Europe are the United Kingdom, Sweden and Poland. The region of Oceania has an advantage in Australia and New Zealand. While in Asia, Sri Lanka looks like a top destination.
What exactly does the spot rate represents?
The spot rate represents the value of one currency to another. 1 unit of Currency A can purchase xx units of Currency B. There is a spot rate of exchange between each currency and all the other currencies in the world. The spot rate is determined by the current market. Foreign currencies are the most liquid form of transactions and are not regulated by the government.
Factors that influence the rise and fall of the spot rate:
When a country’s currency value is rising it correlates to several factors. Sentiment about investing in a foreign currency can be influence by the following economic factors.
Growth / Increase in Gross Domestic Product (2008-2015)
The Quarterly Unemployment Rate in Major Countries for 1st quarter of 2016
Global Job Grow (+) or Decline (-) by major economies as of 1st Quarter 2016
Business Investment by major countries.
The Current Price of Gasoline
An additional benefit of traveling right now is the current price of gasoline. Although gasoline has not returned to the spot price of below $1.00 per for US Gulf Coast Conventional Spot Price FOB Gasoline; it is still below the $1.8 to $2.7 spot price of the 2005 to 2015 for a gallon of gasoline. With the current spot rate of 1.33 it is a good time to take a trip and use a car for part of your destination.
* The facts & figures about the status of United States economy were taken from an article in the Wall Street Journal article “The U.S. Economy Is in Great Shape” dated June 16, 2016.
* The spot rates for foreign currencies were taken historical market figures.