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    Klaus Warfare's Avatar
    Klaus Warfare Posts: 1, Reputation: 1
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    #1

    Nov 27, 2015, 08:21 AM
    AUS$ - US$ Exchange Rates
    I'm an American leaving for a vacation in Australia on December 16, so I've been watching exchange rates pretty closely the last couple of months. Is a rate hike by the Fed likely to make my vacation more or less expensive?
    ma0641's Avatar
    ma0641 Posts: 15,675, Reputation: 1012
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    #2

    Nov 27, 2015, 10:05 AM
    Higher tend to lead to an appreciation in the currency. This is because high interest rates means saving in that country gives a better return. Therefore investors often move funds to countries with higher interest rates. Since the inflation rate is so low in the US, you should see the $$ value increase.
    smoothy's Avatar
    smoothy Posts: 25,492, Reputation: 2853
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    #3

    Nov 27, 2015, 08:08 PM
    Seriously... speaking as someone who travels a great deal and deals with currency exchanges, and has done so for over 28 years..

    If you are so strapped you can't afford a swing in the exchange rate... you really can't afford to be traveling.

    Everything has to be planned in advance . Not just tickets but VISA's when needed etc...if a last minute currency swing is going to break the bank. You shouldn't be going. Because you couldn't afford any unexpected additional expenses which can always happen.
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