5 places where your dollars will go further right now

Compared to many foreign currencies, the value of the dollar is currently strong — it’s an ideal situation for deal-hunting Americans hoping to travel internationally.

Traveling while the 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), but you will be able to stretch your dollar at the destination itself when it comes to accommodations, shopping excursions, dining and other activities.

If you haven’t decided where to go next, destinations such as Japan, Canada, Brazil and a couple of others are all worth considering if you’re looking to get more bang for your buck.

Japan

Record numbers of travelers are visiting 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.

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 an exchange rate of around 160 yen to $1. A few years ago, it took closer to 100 yen to equal a dollar. The yen has strengthened some recently, with the current exchange rate of around 142 yen to $1, but it’s still a good deal compared to several years ago.

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

Canada

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 nine-month low against its stronger U.S. counterpart, recently coming in at 1.36 Canadian dollars 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.”

Related: Booking low-cost flights to and around Canada with Aeroplan

Brazil

Brazil has long been heralded as an affordable destination for U.S. travelers. Now, with the Brazilian real currently valued at around 5.63 Brazilian reais to $1, even more bargains are available. For context, the exchange rate was about 2.21 reais to $1 a decade ago.

Brazil’s tourism board reports that international tourism grew by 10.4% in the first seven months of 2024 compared to the same time last year, with more than 4 million travelers visiting South America’s largest country. That 4 million includes more than 668,000 Americans who have traveled to the country this year, which is second to Argentina at 1.8 million travelers. Overall spending by international tourists in Brazil is also significantly more this year. Between January and July of this year, foreign tourists spent $3.7 billion, which is 9.7% more than the same period in 2023.

Considering the favorable exchange rate and the fact that Americans currently do not need a visa to travel to Brazil, this is an excellent time to book a trip to Brazil. The visa requirement is waived for American, Canadian and Australian tourists through April 10, 2025. Travelers can purchase applications for $80.90 per person through the country’s e-visa site. Avoiding the fee for that expense can mean significant savings for a family planning to visit before April 2025.

Other destinations to watch

Colombia

Richter also suggested Colombia as an ideal destination for U.S. travelers who want to get the most value out of their dollar. The current exchange rate is 4,291 Colombian pesos to $1.

“Colombia is one of the destinations that we’re seeing people really wanting to explore more,” she said. “[It has] lots of rich cultural heritage, friendly locals, and the U.S. dollar goes really far there.”

However, keep in mind that the U.S. Department of State currently recommends that travelers reconsider visiting certain areas of Colombia — research what’s on your itinerary thoroughly before you finalize your plans.

South Korea

South Korea is another destination where the currency has significantly weakened. The South Korean won hit a 15-year low in the second quarter of 2024, depreciating to 1,371 won against $1.

South Korean cities like Seoul and Busan offer many affordable and free activities. Visitors can tour historic and cultural venues like museums and temples, as well as natural attractions situated near the sea or in the mountains. The country also has an affordable public transit system that makes it easy and cheap to get around.

Airfare prices for domestic travel or to other nearby Asian countries can also be fairly affordable if traveling with budget airlines such as Air Busan and Jeju Air.

Ways to maximize a favorable exchange rate

Ready to stretch your dollar by traveling to an international destination that’s currently budget-friendly for American travelers? Don’t forget to do these three things as well:

• Use a credit card with no foreign transaction fees. Card issuers can add up to 3% in fees to international credit card transactions. However, several cards, such as the Chase Sapphire Preferred® Card, the Ink Business Preferred® Credit Card, and The Platinum Card® from American Express (see rates and fees), offer no foreign transaction fees as a benefit, keeping more money in your pocket.
• Use a checking account with no foreign transaction fees when withdrawing cash from an ATM. While paying with a credit card is often preferred since you can earn travel rewards on your purchases, sometimes you will need cash abroad.
• Always pay in the local currency. Decline options for “dynamic currency conversion” when paying for your purchases with a credit card or withdrawing cash from an ATM. It may seem like the merchant is simplifying things by offering you the option to pay in dollars, but you’ll typically receive a poor exchange rate for the convenience.

Bottom line

By watching markets and currency exchange rates, U.S. travelers can anticipate destinations that will emerge as the next great bargain and identify where their tourism dollars may be most needed.

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For rates and fees of the Amex Platinum, click here.