For Australians looking to travel abroad, where will the Australian dollar take them furthest? By examining currency changes, Expedia.com.au has produced this list of the top 5 travel destinations which have seen an appreciation in value of the Australian dollar over the past year.
While Europe and the United States of America are by far the most popular destinations for overseas Aussie travelers, the 5 exciting destinations on this list offer not only something new, but increased value as well. From the streets of Tokyo to the beaches of Rio de Janeiro, Australian travelers are bound to find countless intriguing possibilities for adventure, enlightenment and relaxation in these exotic locales.
Ray Attrill, the currency strategist at NAB, explains the methodology used to compile this list: "Inflation rates had been taken into account when analyzing the data to determine exactly how far the dollar would stretch in each country. After we adjusted movements in currency values for inflation rates, the league table of relative currency winners and losers shifts, though Japan’s place at the top of the leader board is maintained.
While Japan may still not be considered ‘cheap’, the exchange rate moves of the past year means that in many respects – including eating out and drinking – the Australian dollar will now stretch further inside Japan than it does at home." Methodology Statement:
NAB’s currency strategist assessed a range of foreign currencies against the Australian dollar over a 12 month period. The percentage rate of change between those foreign currencies was calculated against the NZ dollar. The annual rate of inflation in those countries was then calculated over the same period and then subtracted from the percentage change in the exchange rates.
These calculations produced a ranking of countries whose currencies give travelers greater value against the Australian dollar. (source)