The current surge in the value of the British pound against the euro is set to make European holidays for British people cheaper this summer. The UK currency is worth 16 per cent more than it was at this time last year when compared to the Eurozone’s common currency.
With current exchange rates of approximately €1.40 to £1 changing £200 will get you €280. In March 2014, changing the same £200 would have netted you only €240. UK financial analysts say the pound is at its highest against the euro since 2007.
At the Association of British Travel Agents (ABTA), Daisy Parker said this time of year was when young adults typically booked their summer holidays. She continued by saying that with the current high value of sterling it would encourage under 30s to splash out on European vacations.
Sebastian Burnside is an economist at the Royal Bank of Scotland and he says that nobody knows for sure which way the pound will go. He did offer the opinion that the Greek bailout debacle was helping sterling.
Mr Burnside finished off by saying no short-term solution to Greece’s problems was in sight and the uncertainly would probably continue to benefit the pound. Other analysts say the forthcoming general election in the UK is bound to impact the pound’s position on global financial markets.
Analysts say sterling is also currently high against the Aussie dollar and South Africa’s rand. Exchanging £1 will net the buyer almost AUD$2. Two years ago the rate was £1 to AUD$1.40.
ABTA’s Daisy Parker noted that while sterling was on a roll, holidaymakers exchanging money abroad needed to be careful where they did so. She said they could lose any benefits if they exchanged at a bad rate or got hit with steep transaction charges.