Planning a Summer Trip Abroad?
Here's What You Need to Know About
Foreign Exchange Rates

FVP, Sr Global FX Advisor

Key Takeaways:

• Foreign exchange (FX) rates fluctuate daily and affect how much you pay abroad.
• Exchanging currency at your bank—and choosing the right card—can help you avoid unnecessary fees.
• Tracking rates and notifying your bank before travel gives you more control and security overseas.

Planning a Trip Abroad? Here’s How to Stay Smart About Exchange Rates.
If your travel plans include an international destination, one of the most important things to prepare, besides your passport, is how you’ll manage your finances abroad. From converting currency to paying for meals, shopping, or transportation, understanding foreign exchange rates can help you avoid surprises and make the most of your budget.

What Exactly is a Foreign Exchange Rate?

A foreign exchange rate tells you how much one currency is worth compared to another. As of today, for example:

• 1 USD ≈ 1.40 CAD (Canadian Dollars)
• 1 USD ≈ 155 JPY (Japanese Yen)
• 1 USD ≈ 0.86 EUR (Euros)

These rates can fluctuate daily based on economic factors like interest rates, inflation, trade relationships, and global events. Even small changes can affect what you pay abroad—so a little awareness goes a long way.

Why Exchange Rates Matter When You Travel

Let’s say you’re heading to Europe for two weeks. If the euro strengthens against the dollar while you’re there, that croissant in Paris could cost you more than expected. Multiply that across meals, museum tickets, and souvenirs, and your trip budget might need a little adjusting.

Being aware of exchange rates helps you:

• Estimate how much cash to exchange
• Avoid high-fee exchange counters
• Plan whether to use cash, debit, or credit abroad
• Understand ATM and foreign transaction fees
• Prepare for price changes during longer stays

Bank vs. Airport: Where Should You Exchange Money?

Here’s the truth: Airport exchange counters are convenient—but often at a cost. They typically charge higher fees and offer less favorable rates.

To maximize your dollars, it’s smarter to exchange currency before you leave—or plan to withdraw cash at a local ATM once you arrive, using a card with low international fees.

Bank of Hope offers foreign currency exchange services at select branch locations. By planning ahead and ordering foreign currency before your trip, you’ll often get:

• More favorable exchange rates
• Lower fees than airport vendors or hotels
• Peace of mind knowing you have cash on hand when you land

Using Your Debit or Credit Card Abroad

Cards are convenient—but not all are created equal for international travel. Before your trip, check for:

• Foreign transaction fees: Many banks charge 1%–3% for each international purchase
• ATM withdrawal fees: These may apply both from your bank and the foreign ATM operator
• Daily spending limits: Make sure your card allows for larger charges while traveling
• How to freeze your card: Knowing how to quickly freeze a lost or stolen debit card can help protect your money in an emergency

Tips to Save on Currency Exchange While Traveling

Here are some easy ways to stretch your dollar while enjoying your trip:

• Exchange some cash in advance—for taxis, tips, or emergencies
• Use a debit card—not a credit card—for ATM withdrawals
• Choose to pay in local currency to avoid hidden conversion fees
• Limit ATM trips to reduce withdrawal charges
• Monitor FX rates and exchange when the dollar is stronger

Need Help Before You Take Off? We've Got You Covered.

Whether it’s your first international adventure or a return to your favorite destination, Bank of Hope is here to help you prepare financially—so you can travel with peace of mind.

Here’s what you can do before you fly:

• Visit a Bank of Hope branch to ask about foreign currency exchange availability
• Use our mobile banking app to set travel notifications and monitor your account abroad
• Explore our personal checking and savings options, including features that support global travel