6 Places Where The USD Will Take You The Furthest In 2024

Summary

• Exchange rates impact travel costs in countries like Taiwan and Thailand. The USD goes further in these destinations.

• Macroeconomic factors like interest rates and GDP growth influence currency values ​​against the USD globally.

• US trade imbalances with countries like Japan create demand for USD, impacting the currency’s strength.

Picture a world where an average bank balance is a millionaire’s bank balance in another country when converted. Envision days filled with lounging at pools in luxury resorts in Bali, 5-star food experiences in Delhi, India, and luxury vintage shopping in Tokyo, Japan, all for much less than what you’d get for a comparable experience in the US

Foreign currency strength against the US dollar (USD) is influenced by various factors spanning economic indicators, market dynamics, and geopolitical events. Interest rate differentials between countries impact currency values, with higher rates attracting foreign investment and strengthening the respective currency against the USD.

Macroeconomic indicators like GDP growth and inflation rates provide insight into a country’s economic health, influencing investor confidence and currency valuation. Global economic trends, monetary policy decisions, political stability, and market sentiment all play pivotal roles in shaping currency movements against the USD.

For travelers wondering where the USD is the strongest, these are six countries where the USD will take you the furthest in 2024.

This article was written with the latest available exchange rates at the time (April 2024) of its creation. However, exchange rates are subject to fluctuation over time.

6 Taiwan

Currency units per US dollar: 32.3700

Eating out and entertainment options in Taiwan are generally inexpensive compared to Western countries. Taiwan is renowned for its vibrant street food culture, where travelers can enjoy affordable meals.

Additionally, tours, public transportation, and recreational activities are relatively cheap compared to Western standards.

The cheapest time to visit Taiwan is from late November to February when the island experiences its quieter months.

5 Thailand

Currency units per US dollar: 36.8400

The United States typically runs a trade deficit with Thailand, meaning that it imports more goods and services from Thailand than it exports. This imbalance in trade can lead to a higher demand for THB to pay for Thai exports, while simultaneously increasing the supply of USD in Thailand.

The US goods and services trade deficit with Thailand was $41.9 billion in 2022.

4 India

Currency units per US dollar: 83.4700

India has historically experienced higher inflation rates compared to the United States. Higher inflation in India can erode the value of the INR relative to the USD, contributing to the USD’s strength against the INR.

India’s inflation rate has been on the rise over the last decade. In 2023, the inflation rate in India was around 5.46% higher compared to the previous year.

The low season falls between April and September and offers a crowd-free experience of the beautiful places in India at bargain prices.

3 Japan

Currency units per US dollar: 154.7700

The United States and Japan are major trading partners, with significant trade flows between the two countries.

While the US runs both trade deficits and surpluses with Japan depending on the period, the size of the US economy and the diverse nature of its exports often result in a net demand for USD to settle trade transactions. This demand for the USD can contribute to its strength against the JPY.

2 Sri Lanka

Currency units per US dollar: 301.3700

The United States is a major source of foreign direct investment in Sri Lanka.

When US companies invest in Sri Lanka, they typically need to exchange USD for LKR to finance their operations, leading to increased demand for USD and its appreciation against the LKR.

• Cheapest City:
  Colombo
• Average Food Cost:
  $5
• Average Living Cost:
  $51

1 South Korea

Currency units per US dollar: 1,381.8400

South Korea is an exporting nation, and it runs a trade surplus with many countries, including the United States. This means that South Korea exports more goods and services than it imports, leading to a consistent demand for KRW to pay for South Korean exports.

Furthermore, there’s a corresponding demand for the USD to settle trade transactions, which contributes to the USD’s strength against the KRW.

• Cheapest City:
  Yangyang
• Average Food Cost:
  $9
• Average Living Cost:
  $50