Taking advantage of strong US $ by sending money ahead of travel date

[Russ&Caro 1,549]

I have been traveling down to Colombia, and independently sending money there in support of my wife for around 10 years. What I have noticed through the years is that whenever the dollar reaches a new high relative to the Colombian peso, that high is rarely maintained for long. As a result, I don't really pay much attention to the rate in my financial decision making.

But lately my assumptions have been turned on their head. The dollar keeps rising against almost all currencies in the world. It keeps reaching a new high about every week or so. At some point, and perhaps very soon, it seems like the dollar might start adjusting downwards considering the severity of the latest boom (Fed rate increase?). As the title of my post suggests, does it make sense to start sending money abroad that will be spent abroad? In this case I have an upcoming vacation in Cartagena at the end of January, not to mention my wife's spending in Colombia during early January.

Anyone else sending more money abroad, of late?

[Moderators, the dollar is rising against all currencies so I'm thinking this is a topic that applies to more than just Latin America region]

EDIT: Not sure if this is related to the high dollar, but I'm finding the US travel websites (Orbitz, Kayak, Travelocity, etc.) are not keeping up with the local prices available. It seems some websites and some international carriers are keeping their prices propped up high for U.S. customers. The only way I could take advantage of local airfares was to call the carriers in Colombia directly. Anyone else having this problem?

Bought two local Colombia flights for $185 where Kayak and other sites wanted to charge me close to $400, for the same exact flights. And related, Kayak's hacker fares are not working. When you click on the links to take you to the carrier's site - they recognize you as coming from an American travel website and include inflated fares.

Edited December 14, 2015 by Russ&Caro

[EricAndOrn 30]

The dollar is rising due to the anticipated increase in the fed interest rate.

[Russ&Caro 1,549]

The dollar is rising due to the anticipated increase in the fed interest rate.

Would like to hear an explanation of this. I'm no economist but when I think of a fed interest hike, I think of the US economy cooling and money spent on foreign goods cooling, and therefore a fall of the dollar relative to foreign currencies. I'm definitely open to other explanations.

[Cyberfx1024 7,980]

It is fast rising against the Philippine Peso as well. Which last time I looked it was 47.43 pesos for every dollar.

[EricAndOrn 30]

Would like to hear an explanation of this. I'm no economist but when I think of a fed interest hike, I think of the US economy cooling and money spent on foreign goods cooling, and therefore a fall of the dollar relative to foreign currencies. I'm definitely open to other explanations.

In a nutshell, interest rates will go up, so the yield of investments in the US will go up as well. Because of this, people who want to take advantage of the higher interest rates need dollars and must buy them. Higher demand for dollars = higher exchange rate.