The respective countries of these currencies - which both happen to be popular destinations for Australian travellers - are currently facing economic dilemmas, which is why the AUD is surging against them.

The Federal Opposition is also calling on the Albanese Government to cover the cost of new passports for those affected by the Optus data breach.

As detailed below, there are several other countries' currencies in which the AUD is stronger.

It's important to note that the exchange rates used in the following conversions are at the spot price - the exchange rates used by your credit card, debit card or foreign transaction service may offer less value because of the margins charged.

Also be mindful of currency conversion fees when travelling or buying things from overseas.

See Also: Top Credit Cards for Travelling

Great British Pound Sterling (GBP)

EnglishPub.jpg

The AUD is currently buying £0.60 GBP, or 60 pence. This is the strongest level since Brexit in 2016. 

The fall in the Pound comes off the back of new Prime Minister Liz Truss announcing tax cuts, and borrowing £290 billion to do so. 

The amount of money currently flowing in the United Kingdom's economy has led to a surge in inflation where it currently sits at an annualised 9.9% - much higher than Australia's 6.1%.

"The Bank of England, correctly, does not want to be seen to be getting drawn into a panic interest rate hike, although it needs to get its skates on when it comes to getting on top of inflation," ANZ bank economists noted.

Despite high inflation, according to The Economist's Big Mac Index, a Big Mac in the UK costs £3.69 or AUD $6.15 - this is cheaper than Australia's $6.70.

Japanese Yen (JPY)

Ramen.jpg

While coming off the boil a bit from highs seen earlier in the month, the AUD is currently purchasing ¥93.13 JPY. 

This is an improvement of more than 15% compared to a year ago. 

A Big Mac costs ¥390 or about AUD $4.19.

The Yen has been on a downward slide of late, dropping more than 20% against the US Dollar in the year-to-date. 

This has Japan's central bank spooked, with it buying up Yen in a bid to strengthen it. This is the first time Japan's central bank has intervened in currency markets in 25 years.

What's better is that the Japanese Government is lifting Covid-induced travel restrictions from 11 October, meaning Aussies can travel to the country without a visa and without a travel agency. 

Other popular countries and currencies worth a look

  1. Norway - NOK: 6.96 krone (+11.00% on a year ago)
  2. New Zealand - NZD: $1.14 (+9.62%)
  3. Denmark - DKK: 4.99 krone (+8.24%)
  4. Euro - EUR: €0.67 (+8.06%)
  5. South Africa - ZAR: 11.59 rand (+5.94%)

No luck for those travelling stateside

The AUD currently buys USD $0.64, or 64 cents - down nearly 15% from a recent peak of 75 cents in April.

A Big Mac in the land of the free and home of the brave costs USD $5.15, or AUD $7.99. 

In the US, annual inflation is currently 8.3%, down slightly from 9.1% in June. 

The US Dollar is often a seen as a 'safe haven' currency others flock-to in times of uncertainty.

In a bid to clamp down on inflation, the US Federal Reserve has also hiked the policy rate to 3.25% - an increase of 275 basis points (2.75%) since April. 

These two factors are why the USD has strengthened.


Advertisement

Need somewhere to store cash and earn interest? The table below features savings accounts with some of the highest interest rates on the market.

Provider

4000$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]More details
  • A high-interest online savings account with no monthly fees, easy withdrawals and award-winning digital banking
  • No withdrawal notice periods or interest rate penalties
  • Save up to 10% on eGift cards at over 50 retailers with Macquarie Marketplace
Disclosure

Macquarie Savings Account (<$250k)

  • A high-interest online savings account with no monthly fees, easy withdrawals and award-winning digital banking
  • No withdrawal notice periods or interest rate penalties
  • Save up to 10% on eGift cards at over 50 retailers with Macquarie Marketplace
Disclosure
4001$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]More details
  • Bonus rate for the first 4 months from account opening
  • No account keeping fees
  • No minimum balance
Disclosure

High Interest Savings Account (<$250k)

  • Bonus rate for the first 4 months from account opening
  • No account keeping fees
  • No minimum balance
Disclosure
000$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]More details
  • Set up your Pay Cycle and connect your accounts from over 140 financial institutions.
  • Retrace your spending steps into categories with Spending Footprint.
  • Start tapping straightaway with Apple Pay, Google Pay™, Samsung Pay, and Garmin Pay.
  • No monthly or international fees on any of your transactions.
Disclosure

Save Account

  • Set up your Pay Cycle and connect your accounts from over 140 financial institutions.
  • Retrace your spending steps into categories with Spending Footprint.
  • Start tapping straightaway with Apple Pay, Google Pay™, Samsung Pay, and Garmin Pay.
  • No monthly or international fees on any of your transactions.
Disclosure
400$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]More details

Savings Accelerator

    02501$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]More details

    Future Saver

      010000$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]More details
      • Deposit at least $1,000+ each month from an external source
      • Make 5 or more eligible transactions
      • Grow your savings balance each month
      Disclosure

      Savings Maximiser

      • Deposit at least $1,000+ each month from an external source
      • Make 5 or more eligible transactions
      • Grow your savings balance each month
      Disclosure
      Important Information and Comparison Rate Warning

      All products with a link to a product provider’s website have a commercial marketing relationship between us and these providers. These products may appear prominently and first within the search tables regardless of their attributes and may include products marked as promoted, featured or sponsored. The link to a product provider’s website will allow you to get more information or apply for the product. By de-selecting “Show online partners only” additional non-commercialised products may be displayed and re-sorted at the top of the table. For more information on how we’ve selected these “Sponsored”, “Featured” and “Promoted” products, the products we compare, how we make money, and other important information about our service, please click here. Rates correct as of October 11, 2024. View disclaimer.

      Important Information and Comparison Rate Warning

      Head photo by Fidel Fernando on Unsplash

      Beer photo by Dan Barrett on Unsplash

      Ramen photo by Diego Lozano on Unsplash