30 July, 2014

By VIVA Team

The euro is 25% down against the pound when compared to its highest level in 2008

UK sterling has strengthened against 18 of the 20 most popular foreign currencies in the past three months, making holidays overseas even cheaper in most of the leading destinations around the world.

The pound has strengthened 3.9 per cent against the euro, making destinations such as Spain even cheaper than normal. In fact, the pound is closing in on an 18-month high against the euro, which perhaps explains why British holidaymakers have flooded to the Costas in their droves so far this summer…

The pound is also up 2.5 per cent against the US dollar, 5.1 per cent against the Jamaican dollar and 4.6 per cent against the South African rand. In Turkey, the Turkish lira has actually risen against the pound by 2.3 per cent, making it more expensive for Brits to holiday there than many of the other popular beach destinations in Europe.

Over the past year, two-thirds of the most popular foreign currencies have suffered against sterling, including the euro – a situation that has also helped boost the overseas property market in Spain as more British buyers flood back.

“Affordability is the key issue for people planning trips abroad, and this does not only relate to package costs,” said Andrew Brown of Post Office Travel Money. “Cautious holidaymakers are becoming increasingly aware how much extra they will spend once they reach their destination so sterling’s surge in value, particularly against the euro and US dollar, provides a welcome confidence boost for the market.

“There is already strong evidence to suggest this is going to be a year when more people take holidays abroad.”

Currently, the euro is worth 25 per cent less than it was in December 2008, when it reached its highest point against the pound at a 1.1 ratio.