Tag Archives: currency exchange rate

Global Factors that Can Influence the Currency Exchange Rate

Several different global factors influence the currency exchange rate for every country daily. You probably already know that currency exchange rates fluctuate very quickly. Actual factors that influence exchange rates are very complicated and numerous, but there are a few factors that have an almost immediate and often noticeable impact on currency exchange rates. As many saw in 2016, political events such as Brexit or the election of a new president or prime minister can have an immediate effect on currency exchange rates and stock market values. However, these are just a few of the major factors that influence exchange rates.

Political stability influences exchange rates

The political stability of any country will have a major impact on its exchange rates. For example, any country that has any type of unstable political setting such as an uprising or violent conflict will often have declining exchange rates. The political turmoil results in other countries losing confidence in that country’s currency. Investments in the country may be deemed to be riskier, as unstable environments are usually correlated with poor economic performance. Societies may be more dangerous to do business in, or more dangerous for consumers, which means that overall trade rates would decline.

Debt has a major influence on exchange rates

Debt also has a major influence on exchange rates, as countries with large amounts of debt will generally have weaker exchange rates. Countries that have large amounts of public debt are less attractive to foreign investors. The currency exchange rate of any country with large debts will generally start to decline over time, if the debts are not paid off in a timely manner. Foreign investors would rather choose countries that are showing signs of GDP growth, as this indicates that their economy is healthy for the short-term future. Large debts also result in large inflation rates which in turn lower the value of a currency significantly.

Central banks influence exchange rates

Central banks have a major influence on currency exchange rates, and they are mainly able to influence them through interest rate manipulation. By increasing interest rates, lenders can receive a higher return compared to other countries, and the country can attract more foreign investors. In some cases, this would result in an increase in currency values, but in other cases it can result in a decrease. Central bank influences can be complicated because high interest rates can be mitigated by increased inflation rates. A decrease in interest rates can result in lower amounts of foreign investment. Central banks will often influence interest rates to also affect import and export businesses. This can be seen in countries like China that have been thought to artificially devalue their currency to maintain a higher level of exports and make their exports affordable compared to other countries.

These are just a few of the many complicated factors that influence currency exchange rates. We provide you with daily updated exchange rates for several major currencies throughout the world. Give us a call today for more information about exchange rates or to ask any questions that you may have.

Weak Currencies to the U.S. Dollar Based on 2016 Info

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As you probably already know, the currency exchange rate fluctuates daily, and there are a number of factors that can have an effect on it. The recent Brexit vote is a perfect example of how political events can shake up a currency. It had a dramatic effect on the value of the pound compared to top currencies like the U.S. dollar and euro, and the British stock market also dipped down as a result of the news. Below are some of the weakest currencies compared to the U.S. dollar that you may consider purchasing from Xchange of America, especially if you plan on traveling in the future.

The Chinese Yuan remains devalued

As some popular politicians in the United States have noted, the Chinese yuan has been devalued on a regular basis compared to the U.S. dollar, purposely. The People’s Bank of China directly devalues their currency for particular economic reasons. One result of this devaluation is that Chinese exports become cheaper compared to the dollar, which strengthens China’s export economy. This means that you can also buy more yuan for the dollar if you plan on traveling to China, so there are some benefits to travelers. You can always contact Xchange of America to get regularly updated information on the value of the U.S. dollar to the yuan, as the info is updated regularly.

The Canadian dollar took a dip

The Canadian dollar was almost equal compared to the U.S. dollar back in 2011. But it has dipped significantly since then due to various economic and other factors. In 2015 it dipped to as low as around 0.7 per U.S. dollar, and although it has recovered slightly, many economists predict that it will continue to be weak compared to the U.S. dollar for some time. The effect has partially been due to declining oil prices which dramatically dropped in 2015 and continued to drop in 2016. That means that right now it is a great time to visit Canada if you are living in the United States, and you can purchase Canadian currency right on our website anytime you plan on scheduling a trip there!

The Vietnamese dong is also weak

The Vietnamese dong is sold by Xchange of America’s affiliate Dinar Inc., and this currency has been weak compared to the U.S. dollar for some time. It is considered to be one of the weakest currencies, and you can generally purchase several thousands for 1 USD. This means Vietnam a great country to travel to, as you can travel on quite a low budget and enjoy a great vacation staying some of the top hotels and enjoying great food and other activities. Vietnam is also a beautiful country with several huge markets where you can buy interesting souvenirs, and it is well known for its interesting street food. To learn more about currencies that are currently weak compared to the U.S. dollar contact, Xchange of America today by calling us at 1-888-800-1977. You can also see exchange rates posted on our homepage which are updated daily.

Timing Your Currency Purchase for When There is a Favorable Currency Exchange Rate

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Did you know that you can save money on your currency exchange by timing your purchase for when there is a favorable currency exchange rate? The exchange rate fluctuates on a regular basis due to a wide range of different factors. Xchange of America updates their exchange rate based on these fluctuations and other criteria. On a particular day when the U.S. dollar is strong against the currency that you are trying to purchase, you can save money on your purchase by buying your currency that day. Once you lock in your price you are good to go, even in the exchange rate changes the next day.

You can ask Xchange of America for advice

Xchange of America offers advice on how to do this, as it can be a bit confusing even for those with experience. You will need to visit the website or contact them for information on exchange rates. You can even be notified on a particular day when the exchange rate is strong, which can save you the trouble of having to figure it out yourself. Anytime you need to buy currency for a trip or for another purpose, it is a good idea to try to follow the exchange rates that are posted on Xchange of America, or as previously mentioned you can get a notification as soon as the exchange rate is preferable.

You can save a substantial amount

Although it may seem like too much effort, the reality is that you can save quite a lot on your currency purchase just by making it at the right time. It becomes even more important if you plan on making a bigger currency purchase, for the purpose of investing or if you plan on traveling abroad for an extended period of time. You don’t want to have to buy currency after you have traveled because it can be a major hassle and you might not get the same fair rates as you would from a reputable online provider like Xchange of America. The amount that you can save on a favorable day can quickly add up when you buy large quantities.

Give yourself time

Be sure that you give yourself enough time to make a purchase on a day when the exchange rate is favorable so that you can have your currency delivered to you when you need it. You can call Xchange of America now at (888) 796-2962 to talk about preparing for your currency purchase. It just may be that there is a favorable exchange rate today, and if that’s the case you will definitely want to lock your price. However, if it isn’t, a currency expert will let you know. Bear in mind that that there is no guarantee that the exchange rate won’t drastically change on any given day, and that any advice given to you is only to help you make your own decision. You will need to do some research as well, but we are happy to help. Give us a call today at (888) 796-2962 or if you are ready feel free to order online now!

The Money You Carry: The Ups and Downs

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No matter what kind of travel packer you are, there are a few things that every single person should take with them when they are away from home, especially when going out of country – toothbrush, comfy underwear, a good book, etc. But the one thing that, no matter where you are going, you should always bring with you is the obvious one: money. But it is the twenty-first century and most of the modern world has a variety of options when it comes to carrying money around.

Although lots of people worry about the money they might lose because of the currency exchange rate, cash should always be the foundation of your travelling funds. Local money is good to have on you to pay for things quickly and to buy things from places that don’t accept credit cards. In some areas of the world, currency varies so often that many places accept American money as is.

ATM cards and/or debit cards are usually a positive thing to have on your person as they carry a double function – a method of paying electronically as well as being a method of getting you cash. ATMs are abundant just about everywhere in the developed world so getting cash is not usually a problem. The biggest issue with debit cards and the like is that, no matter how much like credit cards they are, they same kinds of protection don’t apply. If you report fraudulent charges with in two days there is only a $50 fee… but if you wait longer than that the charge can be as much as $500; according to the Federal Trade Commission, if you wait more than 60 days, the amount of money you are liable for is almost unlimited.

As with most things that involve money nowadays, credit card is the preferred method of payment just about anywhere you go. Unless you happen to be wandering through a rural area or a village that isn’t technologically equipped, credit cards is almost as safe a bet as cold hard cash. With the amazing fraud charges protection and the zero liability, you can go anywhere and do pretty much anything and never have to worry about anyone snaking your card numbers; even if you do find a thief has charged money to your card, the most you are liable for is a whopping $50. Since they are more widely used overseas, try to get a chip-enabled card. The only thing you have to worry about it the 3-5% surcharge for foreign transaction – with larger purchases those percentages can add up, so choose wisely.

Whichever payment methods you choose to bring or not bring with you on your trip always be careful and wary – foreigners are always easy targets for theft. Before you leave, call both your banks and your credit card companies and let them know your destination, your departure date, and your arrival home date; if nothing else, it will let them know that there isn’t so crazy person who has snatched your credit or debit card and is flying around the world, racking up exorbitant charges. To avoid getting ripped off by savvy locals looking for a quick buck, try find an online service with a good currency exchange rate, like http://www.xchangeofamerica.com/ , to get your cash before you go.

Keeping Your Cash Out of Sight

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People who travel have a lot to worry about when it comes to their money, whether they are worrying about the currency exchange rates or how many credit cards they can travel with safely and comfortably. While those who have a bright view of humanity in general probably don’t worry about it, theft is and always should be one of the paramount concerns of a person traveling with any amount of money. There are plenty of places you can store your cash that you think would be safe but in fact are the first places thieves look. Here are a few hiding spot ideas for anyone who is looking for a little something extra when it comes to being the one and only person aware of your money’s location.

• On Your Person – Everyone knows that investing in a money belt is a no brainer, but there are plenty of other places on your body you might never have thought of to stash your cash. You might try sticking a few bills inside your sock or in your shoe if your not wearing sandals. And for ladies who aren’t shy, the inside of a bra is also a discreet hiding spot. Many jackets, pants, and skirts nowadays also come equipped with hidden and/or interior pockets too. Before you go to buy anything and need cash from one of your hiding spots, just visit the bathroom and no one will see your secret stash. Never put your wallet in your back pocket.
• The Rental Car – If you have sprung for a rental car to avoid shelling out for buses, trains, and taxis, there is a small goldmine of sneaky places to inconspicuously store bills. Obtain a roll of tape and you are instantly able to hide money under the floor mats and underneath the seats. If you can take the time to clean out an old oil carton or can, either is a perfect little hiding spot. For the particularly crafty, look for parts inside the car that can be removed with a screwdriver and are big enough to hold a few bills in a plastic bag.
• In Your Hotel – So many hotel room safes are sketchy at best as so many staff members have the code for custodial purposes. If you are not staying somewhere where there is a safe that lets you decide your own code, there are some great stealth options available. If you have some plastic bags on hand, try stashing some money inside the toilet tank or inside a liquid soap bottle. If you can find a screwdriver or pack one with you, phone covers and old TV backings can easily be removed and replaced for a subtle spot. Some less complex places include inside the shower curtain rod and inside cushions with zippered covers.

When you are out and about with your money, only ever take what you need and no more – it is one of the easiest ways to compromise your finances. It is always good to keep both American and local currency with you when you travel, so if you are looking for a company with a good currency exchange rate, visit http://www.xchangeofamerica.com/ today.

Understanding Currency Exchange Rates

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If you are a savvy international traveler, one who has read up on all the things you are supposed to do and not do when you go to a foreign country, then you have probably already heard that making sure you buy foreign currency before your trip is one of the best ways you can prevent money loss and travel stress.

While it is often as easy as paying for the correct currency and having it delivered to your door, it is also important to understand the process of currency exchange as best you can so you can make sure you are getting yourself the best rates possible. Below is a list of info that will hopefully give you the best experience when you go to buy foreign currency.

1. When you see the term “sell rate,” this is referring to the rate at which the foreign currency is being sold. As with most things involving money, the rate at which currency is sold depends upon the demand or lack thereof – determined by things like economic success or inflation – and concordantly the appreciation or depreciation for the currency needed.
2. Parallel to the sell rate is the “buy rate,” which is the rate at which an exchange service will buy foreign currency back from you.
3. When shopping for a currency exchanger, it is important to not confuse the “spot rate” for your sell or “buy rates. Sometimes called the “interbank rate,” this is the rate banks charge each other when money is traded or exchanged in significant amount between them. As a tourist, you will not be able to buy currency at this rate. It is simpler to think of the “spot rate” as a wholesale price and the sell/buy rate as the retail price.
4. Should you come across the term “spread,” it will likely be in reference to the difference between the buy and sell rates. For example: Jack is going to France and buys €5,000 for $7,000. Jill comes home from France and sells the €5,000 she has and receives $6,500. That would make the “spread” $500.
5. Unless you are a wayward wanderer, then you probably won’t need to know what a cross rate is, but it is still good to know the term to avoid confusion. The “cross rate” is the exchange rate between two currencies when neither are the official currency of the current country such as if you wanted to change dollars for yen while travelling in Brazil.
6. “Commission” is an important term to keep a look out for whenever you use an exchange service. This is the term used for the fee that services charge for providing an exchange, which Exchange of America never charges you.

Buying foreign currency can be confusing for anyone, whether you happen to be familiar with the nature of exchange rates or you find anything to do with money and math as something to avoid at all costs. But there are plenty of online services that make the process much smoother for their customers. Check out http://www.xchangeofamerica.com/ to find out more.

More Key Factors that Influence Currency Exchange Rates

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Currency exchange rates are influenced by a wide range of factors that can cause dramatic shifts in the value of a particular currency. One primary example is the recent effect that Brexit had on the British pound. The pound dropped to values that haven’t been since in over 30 years after the news of Brexit occurred, and both global and local markets in the UK felt the impact as well. The effect that this had on the value of the pound had much to do with perception and a loss in investor confidence more than anything else, but perception is precisely one of the major factors that influence a currency exchange rate for a particular country.

Investor confidence can be quickly lost or gained

A country’s political and economic stability have a dramatic impact on the currency exchange rate for its particular currency. As it was seen with the recent Brexit vote, the political and economic turmoil that occurred in the days afterward had a dramatic impact on the value of the pound, which dropped significantly, and one reason this occurred was a loss of investor confidence in UK stocks and the pound. Investors sold shares in large quantities, and it’s estimated that the resulting share selloff cost stockholders trillions of dollars, and simultaneously the value of the pound significantly shifted.

Other factors that influence a currency exchange rate

Some of the other factors that have been previously mentioned on this blog include government debt, recessions or economic booms, interest rates, a country’s balance of payments, terms of trade and many others. When countries go through recessions, their currencies often weaken as their chances to acquire foreign capital diminish. The terms of trade of a country include the ratio of export prices to import prices. The terms of trade of a country improve of its export prices rise faster than its import prices, and that can have a positive effect on a particular currency. Also, countries with a large amount of debt may not be able to acquire foreign capital as easily and as a result their currency may decline in value.

A lower currency exchange rate is not always bad

Although a lower currency exchange rate for a particular country may seem like it’s always a bad thing, this is not necessarily true. When a country’s currency exchange rate drops, it can be bad for citizens of that country in terms of traveling to another country. Their purchasing power declines, and they aren’t able to buy as many goods and services as they used to. However, it makes traveling to that particular country more attractive for tourists from other countries, as their local currencies become stronger. This can increase tourism to a particular area, and it can also make a country’s exports more attractive to foreign buyers, all of which can have a net positive long term effect on a particular economy. However, if a currency drops too low, it can have dramatic effects on the lives of the residents of a particular country, as their purchasing power to buy local goods can also diminish.

What Causes a Currency Exchange Rate to Appreciate?

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When buying foreign currency, it’s important to make sure you get the most for your money. This means, you’ll want to know and understand what it means for a currency exchange rate to appreciate. When currency appreciates, it means that one currency is stronger than another. For example, when the Euro has appreciated, it is stronger than the U.S. dollar and vice versa. And as the demand grows, it continues to strengthen that particular currency.

Before buying currency and when doing your research, it’s important to know what causes a currency exchange rate to appreciate. Some of those reasons can include increases in competitiveness, interest rates, and higher economic growth. Other things to consider are inflation, speculation and expectation, as well as surplus funds and the impact of bought domestic currency.

Supply and Demand

An increase in demand can cause interest rates to rise causing people to hold on to their money which can cause appreciation. As investors speculate and if they think a currency will appreciate, their speculation can cause interest rates to rise. One of the more important reasons currency might appreciate is because of higher economic growth. As the country sees economic growth and interest rates rise, it can make the currency stronger; which can lead to an increase in spending and exports.

Impact of Appreciation

If an exchange rate increases in value, it depends on a number of factors including economic growth, competitiveness when importing and exporting, and the rate of inflation. As an economy becomes more competitive, then a currency appreciation is a good thing. But, if the competitiveness is based on speculating about a weaker economy, then a strong currency can fall short.

Effects of Economy and Government on Appreciation

Similarly, if an economy is in recession, then appreciation causes the currency to weaken and if the economy is booming, appreciation can reduce help reduce inflation leading to higher employment rates and therefore, more spending, increasing the strength of the foreign currency.

Though investors and economies set the tone for currency exchange appreciation rates, sometimes appreciation can be impacted by governments themselves through balance of payments, government debt, or government intervention. Countries who have difficulty getting enough capital may find that their currency doesn’t appreciate. But, if the value of imports is greater than the exports, then it can contribute to higher economic growth. Knowing what causes a currency exchange rate to appreciate is something to consider when deciding the best time to buy foreign currency.

At Xchange of America, rates and policies are clearly stated, so you’re never surprised by hidden fees or additional expenses. A convenient conversion calculator lets you see the rate of conversion of the currency you plan to buy. You can buy your currency with a cashier’s check, money order, bank draft, bank wire, or even a credit or debit card. There are no transaction fees, the shipping fees are clearly stated, and the ease of use makes Xchange of America the place to buy foreign currency when you plan your next trip overseas.

Foreign Currency Exchange Saves You Money

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You are used to dealing with America dollars and many foreign countries will readily accept these dollars when you pay for goods and services. This does not mean that it is a good idea for you to use American dollars in a foreign country. It may cost you significantly more to paying in American dollars than it would if you used foreign currency exchange to pay with the currency of the country you are in. For this reason, it is advisable to buy currency before traveling to a foreign country. One convenient way to buy currency is to buy foreign currency online trough Xchange of America.

American Dollars and Dynamic Currency Conversion

When making purchases in a foreign country, you may have the option to pay for these purchases with American dollars. Switching from paying in the local currency of the country to paying in American dollars is a process called dynamic currency conversion. When a store merchant gives you the option to pay for goods or service in America dollars, the currency exchange rate that the merchant will use is far worse that the currency exchange rate that you can get elsewhere. Because the currency conversion is taking place at the point of sale, the merchant does not need to offer a competitive foreign exchange rate and can offer foreign currency exchange at the highest rates that are charged. The merchant is allowing you to have the convenience of not having to buy currency, however, this convenience is coming at a significant price. The merchant may not even tell you what currency exchange rate he or she is using.

Foreign Transaction Fees and Dynamic Currency Conversion

You may be under the impression that if you use dynamic currency conversion you can escape the foreign transaction fees that many credit cards and debit cards charge when you use them in foreign countries. This may not be the case. Many credit card companies will charge you a foreign transaction fee even if you use dynamic currency conversion. This is because the credit card company’s ability to charge a foreign transaction fee is not limited to instances in which foreign currency is used. Instead, the credit card or debit card company may charge a foreign transaction fee for every time the card is used in a foreign country regardless of the currency of the purchase.

Save Money and Buy Foreign Currency Online from XChange of America

To avoid the often high cost of dynamic conversion which can be accompanies by foreign transaction fees, it is a good idea to buy foreign currency online before departing on your trip abroad. This allows you to receive a more favorable currency exchange rate that you would receive through dynamic currency conversion at the point of sale. XChange of America updates its foreign currency exchange rates daily and does not have hidden fees that can add up to you paying a lot more. Thus, it is wise for you to buy foreign currency online from XChange of America before traveling to a foreign country.

Important Facts About Foreign Currency Exchange

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Many people purchase currency online before they travel, and foreign currency exchange has become one of the biggest businesses in the world with an increasing amount of global travel and a more globalized society.

It’s important to purchase the currency of the country that you are traveling to prior to heading out; this way you won’t be stuck without having a sufficient amount of cash for expenses that might pop up. You have to remember that although some places may take U.S. dollars or whatever else your native currency is, there may be other places that don’t. To avoid having to make a last minute detour and trying to find an exchange abroad, you should be sure to purchase currency ahead of time before your trip.

One tip to remember is that when a country raises their interest rates this will cause their foreign currency rate to rise, and when they announce the lowering of interest rates the currency exchange rate will fall. But, the world itself is a volatile place and it is hard to make predictions long term. Take for example the unease of the euro today. Only several years ago it was considered one of the strongest foreign currencies in the world.

So the currency exchange rate will fluctuate based on these factors and other factors. You’ll notice that the rates on Xchange of America will change from time to time, and this is because of the fact that the exchange rates fluctuate. In spite of this, you can time your currency purchase to get the most foreign currency for the lowest amount of money.

You do not need to venture solo into buying foreign currency all on your own. You can choose to work with a company that has expertise in this area. In other words, you can work with a company like Xchange of America that has employees who schooled in foreign exchange currency and allow them to do the research and exchanges for you or on your behalf.

We have the expertise to be able to advise you on the best time to purchase the currency of the country that you’re traveling to, and we can provide you with any specific information that you need to know based on your requirements.

It’s always a smart decision to carry a sufficient amount of currency with you prior to traveling, and you’ll find that you can not only save a lot of money if you do this, but that your trip will often be easier. You won’t get stuck not having enough currency for transportation, food, and many other types of expenditures, and you’ll be able to get around with ease.

It can be difficult to find a suitable currency exchange service before you travel, but Xchange of America is one of the leading services in the world, and we can definitely help you no matter what your requirements are. To learn more about the currency exchange services provided by Xchange of America or to ask any questions at all, contact us today at 1-888-XOA-XOA.