Overseas Travel: Exchange rates directly impact the cost of travel abroad. A strong home currency gives travelers greater purchasing power, while a weak currency means their money won’t stretch as far, according to Commerce Bank. Travelers often monitor exchange rates to decide when to exchange currency or whether a particular destination is more affordable.

Sending Money Abroad: Individuals regularly transferring money to family, friends, or for various purposes need to consider exchange rates to ensure they are getting the best value and minimizing transfer costs.

International Purchases: When buying goods or services from other countries, exchange rates determine the actual cost in one’s home currency. This applies to online shopping, making major purchases like real estate or luxury goods abroad, and even evaluating the cost of international education.