Poor pound putting extra squeeze on holidayfunds

The fall in sterling is having a noticable impact on foreign exchange rates
The fall in sterling is having a noticable impact on foreign exchange rates

Many travellers embarking on overseas August bank holiday trips will have less spending money if they failed to buy foreign cash in advance, a currency trader has warned.

FairFX reported that the pound has fallen 3% against the euro since the start of the summer holidays a month ago to a rate of 1.09, meaning tourists are getting 32 fewer euros for every £1,000 they exchange.

Tourists who wait until they are about to board their flight face even worse deals, with some airports offering walk-up rates of just 0.95 - less than one euro per pound.

A positive update on the eurozone economy gave the euro a boost, while sterling has suffered from the UK’s fragile financial outlook.

It is not such a grim scenario for those heading to the US, as the pound is 7% stronger against the dollar than when it reached a historic low in January.

But the exchange rate has fallen by 2% since this time last month to 1.28, meaning people buying currency for a transatlantic break are getting 21 fewer dollars per £1,000 exchanged.

FairFX chief executive Ian Strafford-Taylor told the Press Association: “Holidaymakers looking to make the most of their spending money have had a tricky summer.

“At a time when going on holiday is at its most expensive because of the school holidays, families have had the added financial squeeze of a volatile pound to contend with.