Holidaymakers benefit from eurozone uncertainty
Tuesday 08 May 2012
Holidaymakers travelling to eurozone countries are getting the best value for money in three-and-a-half years amid the continuing eurozone crisis.
The pound has risen against the euro to levels not seen since autumn 2008 in the wake of elections in France and Greece which caused heightened uncertainty over plans to tackle the debt crisis.
The fallout has led to some foreign exchange outlets selling euros at a rate of more than 1.20 to the pound, a rate which could rise further still in the coming months due to the pound's "safe haven" status.
The favourable rates could bring some welcome relief this summer to families whose budgets are under pressure from inflation, which has driven up living costs and left them with little disposable income.
Currency specialist Travelex said demand for the euro shot up by 290% on its website today compared with a year ago, showing how holidaymakers are already moving to take advantage of the pound's relative strength.
Elvin Eldic, regional manager of Travelex UK, which is offering a rate of just under 1.21 euro, said: "The weekend's elections in France and Greece have thrown the eurozone into fresh turmoil, driving the pound to a three-and-a-half year high against the euro.
"While the pound has been hovering around a 22-month high for the past fortnight, the latest boost means tourists will be getting over 1.20 euros for every pound for the first time since November 2008.
"That's an extra 52 euros for every £500 exchanged for British holidaymakers heading to the continent."
Jacqui Holt, foreign exchange director at Thomas Cook UK and Ireland, said that British tourists travelling to the eurozone will be able to get 10% more than they could a year ago with their spending money, adding: "There's never been a better time to book a eurozone holiday."
The Post Office is also offering an online exchange rate of just under 1.21 euro, or 1.15 in branch, or more than 1.20 in branch for transactions of more than £1,000.
Andrew Brown, Post Office head of travel money, said: "Holidaymakers visiting Post Office branches today will find that sterling now buys more euros than at any time since November 2008.
"As Europe hits the news headlines once again, this is great news for anyone planning a trip to the eurozone this summer. Our advice to travellers is to keep a close eye on the rates as their holiday approaches."
Meanwhile, Richard Driver, a currency analyst at Caxton FX, predicted the pound will grow stronger in the coming months.
The London market has been holding firm in the face of eurozone volatility, but traders remain braced for fresh turbulence after Greece's failure to form a government cast further doubts over the country's rescue as well as the long-term future of the single currency.
He said: "Sterling is gaining plenty of momentum thanks to its growing safe-haven status and considering the chronic instability within the eurozone, we could realistically see the pound hitting the 1.30 euro mark by the autumn."
The magicians using online collaboration to push boundaries
Jennifer Lawrence attacks mass media again over body image
Jennifer Lawrence: 'It should be illegal to call someone fat on TV'
Sun will 'flip upside down' within weeks, says Nasa
Ian Watkins: Police forces probed over earlier allegations as paedophile Lostprophets singer sentenced to 35 years for child sex offences
DNA from a 50,000 year old toe shows Neanderthals were highly inbred
Devyani Khobragade: India-US row escalates over arrest of diplomat in New York
Exclusive: Young people ‘want UK to stay in Europe’: Four in 10 adults aged 18 to 24 are ‘firmly in favour’ of membership, poll shows
You can STILL be jailed for being a republican, government confirms, and it remains illegal to even 'imagine' overthrowing the Queen
Kiss and yell: Italian protester charged with sexual assault after kissing riot police officer
Fighting back: the woman giving a voice (and 49,999 others) to the victims of sexism - by giving an airing to their horror stories
PM denies two child limit for benefits is part of Tory welfare policy
Ethan Couch: Texas quadruple murderer – or a victim of ‘affluenza’?
- 1 America's 'virgin births'? One in 200 mothers 'became pregnant without having sex'
- 2 Sun will 'flip upside down' within weeks, says Nasa
- 4 Christmas comes early: Justin Bieber announces he's 'retiring from music'
- 5 Children evacuated from swimming pool after prosthetic leg mistaken for paedophile
- < Previous
- Next >
£79000 - £93000 per annum: Pro-Recruitment Group: Commercial Property Associat...
£25000 - £32000 per annum: Harrington Starr: Junior Business Analyst - Banking...
£21999 - £27001 per annum + Benefits: Pro-Recruitment Group: Do you have exten...
£25000 - £35000 per annum + benefits + bonus: Harrington Starr: Business Analy...