How to Stretch a Weak Dollar

To hedge against a further decline in the dollar’s value, consider buying foreign currency today for your next vacation. This year, Travelex, a London-based foreign exchange company, is rolling out a prepaid foreign currency card for the American market that can be loaded with euros or pounds and used for purchases and ATM withdrawals. The card, called Cash Passport, will be available at Travelex branches, and allows travelers to lock in the exchange rate at the time the card is loaded. And while there is a $2 fee for ATM withdrawals, the card won’t change currency fees for foreign purchases (typically 1 to 3 percent) as so many credit cards do. Travelex and other foreign exchange companies like International Currency Express also let travelers buy euros before their trips. Orders can be placed through their Web sites with shipping charges of $10 to $15. Note: if the dollar surges in value, Americans would do better to wait. But, as Wachovia global economist Jay Bryson put it, “If you like certainty, you probably want to buy euros today. That way, you’ll know exactly how much the foreign currency will cost you.”