Everyday Math

Math and Traveling

What is a currency exchange rate?

When traveling to another country, it is important to know the currency exchange rate, which is the value of a traveler’s home currency compared to the currency of the country being visited. Like all currency, the U.S. dollar fluctuates daily when compared to other countries’ currencies. For example, if you travel to Canada, and the U.S. dollar can buy 1.02 Canadian dollars, then the exchange rate is 1.02 to 1. If you go to New Zealand, and the U.S. dollar exchange rate is 0.5477, then 1 New Zealand dollar is worth 54.77 U.S. cents. The daily change in rates is based on many global economic factors, including the economic stability and health of the various countries, the price of commodities such as oil, gas, and gold, and the ups-and-downs of the various stock markets around the world. So before you travel, it’s best to check the Internet for the latest currency exchange calculator to compare your money to the currency rate in the place you intend to travel.


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