Aussie Dollar soars: 4 destinations you can visit cheaper right now

The dollar goes further, and so can you!

The Australian Dollar is having a moment right now. It's just hit 70 US cents, the highest it's been in almost 2 years.

And it's not just the US. The dollar is performing well against a range of currencies, making travel cheaper for Australians because every dollar you spend goes that little bit further.

It's cheaper to travel to the US of course. But there are plenty of other destinations that are cheaper to visit right now.

Graph of the AUD versus the USD (source: RBA) Image: Supplied

1. Japan

Japan is one of the most popular travel destinations in the world right now. To the point that many Japanese people are getting fed up with the influx of gaijin.

And that's partly because this usually expensive country has become cheaper thanks to a weak yen.

The AUD right now is basically as strong as it's ever been against the yen. One Australian Dollar gets you 106 Japanese Yen. This time last year it only got you 97 yen.

2. South Korea

While it's not as popular for Australian tourists as Japan, tourism to South Korea is growing faster than anywhere on Earth (disclaimer: I lived in Seoul for many years and am very biased).

And right now the Australian Dollar is stronger against the Korean Won than it's been in a decade.

You get almost ten cents more per dollar against the won than you would have even just a year ago.

While South Korea is not a cheap destination by any means it can be surprisingly affordable, and a strong dollar makes a big difference.

My one tip as a former local: if you're visiting Seoul please venture beyond Myeong-dong and Gangnam. There's so much more to see!

3. Europe

OK, so Europe is a continent not a country but we're talking about the countries that use the Euro here.

One gold, slightly grubby Australian dollar coin currently gets you 58 euro cents, which is a 10-month high.

Just don't look at what it was in mid-2022 or you'll weep for the travel savings you've missed.

4. Indonesia

This is an easy one for Aussies but if you're traveling to Indonesia, our dollar has never been stronger against the Indonesian Rupiah.

This is because of both a strong dollar and a very weak rupiah caused by investor fears about the country's economic outlook and concerns about the independence of the central bank (sounds a bit like the story in the US).

Another unsolicited travel tip: Bali is where most Australians go and that will likely never change. But the neighbouring island of Java boasts some extraordinary sights, from the chilled out city of Bandung to the culture and nature-rich Yogyakarta to the sprawling, energetic capital of Jakarta. Dare to be different!

Why is the Aussie Dollar so strong?

There are several reasons the AUD is having a moment. For one thing, the chaos and uncertainty in the US at the moment is driving its dollar down. Australia looks like a very safe harbour by comparison.

Inflation in Australia is also fairly high, increasing chances of an interest rate hike in the coming months (or weeks!). This also strengthens the dollar.

How to make the most of the strong dollar

If you're traveling overseas you can book hotels now and possibly lock in a good deal with current exchange rates. Although you never know if the dollar will make further gains in the months ahead.

Another option is to purchase foreign currency now, or lock it in via a prepaid travel money card.

And if you're booking accommodation, tickets or events in a foreign currency be careful how you pay for it. Many credit cards charge a 3.5% foreign currency conversion fee.

But some cards have a 0% fee, which can be a big saving when you're spending thousands of dollars.