When traveling to Florence you will have to carry around some Euros. You can usually convert some of these at your local bank or currency exchange. Due to the declining Dollar there is an increased value exchange for the Euro.
Most Florence shops will accept traveler’s checks, and the exchange rate is calculated based on the daily rate of exchange that is listed in the local newspaper.
If you plan on traveling to Florence, it would be a good idea to bring along cash and not use your credit card as most of the time the credit card companies will charge you a rate of exchange that would be advantageous for them. Sometimes the difference can be as high as 3% so please pay attention to that or you will end up with an unexpected bill when you get home.