As a back-up to ATMs, consider taking some traveler's checks. You can buy traveler's checks denominated in the currency of the country you'll be visiting. New this year are euro-denominated traveler's checks. But keep in mind that when you make a purchase with a euro traveler's check, any change you're due will be given in the local currency since euro notes and coins aren't yet available. Try to avoid exchanging money in hotels, restaurants and non-bank currency exchanges, which tend to offer the worst rates.
Banks typically offer the best rates.
Don't convert more cash into a local currency than you expect to spend in that country. If you wind up with extra foreign currency at the end of your trip, you'll end up taking another foreign exchange loss when you convert the money back into U.S. dollars. When comparing exchange rates, be sure to factor in any fees charged. Some currency exchanges will post an attractive exchange rate but then hit you with a steep transaction fee that makes the conversion an unattractive deal. E-mail this story to a friend.