Exchange Rate Options if Travelling to US Next Year?

Skinnycap on 03/11/2022 - 08:50

Hi,

I'm hoping to travel to the US next year. I am concerned the exchange rate of AUD to USD is going to continue to worsen so I'm wondering what options may be available to move say $20k AUD to USD and then depending on the exchange rate at the time either spend that USD or AUD, then potentially just hold the remainder in USD to be spent in future?

Or is it that even if the AUD continues to fall, the difference expected at $20k isn't that much?

Thanks!

Financial Exchange Rate

Comments

  • Shadowsfury on 03/11/2022 - 08:57
    +2

    HSBC can lock in exchange rates with their everyday global account

    Can probably do same with services like Wise

    I'd say try to prepay whatever you can (car hire, accommodation, tours etc) and leave the rest up to chance that way you've hedged yourself a little

    Wouldn't hold the cash in USD indefinitely though (or at least until your next trip at an unknown time) as every year you'll be missing out on some interest which is the same as letting the exchange rate get worse and worse.

  • Seraphin7 on 03/11/2022 - 09:59
    +2

    Trying to pick exchange rates? Better off betting on cockroach racing.

    In all seriousness, if you are particularly worried, get half your expected spend in USD now and take your chances with the other half when the time comes. At least then you'll win on one while losing on the other.

  • Stewardo on 03/11/2022 - 12:15

    Wise account

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