British holidaymakers loosen the purse strings

While less Brits have taken holidays abroad so far this year , volumes of foreign currency have increased, indicating renewed confidence in consumer spending when travelling abroad, according to the latest American Express Global Foreign Exchange Services Currency Index.

Increased travel confidence amongst Brits

Terry Perrin, Director of Trading & Business Development at American Express Global Foreign Exchange Services explains: “New year is traditionally a time when purse strings are tightened but currency sales in the first quarter (January to March 2010) were up by six per cent year on year, as holidaymakers increased their spending money.”

Brits turn to Asian destinations

Over the first three months of the year, a number of Asian destinations climbed up the Currency League Table, knocking down traditional favourites, such as Mexico and the Dominican Republic.

The Thai Baht and Singapore Dollar both climbed a place to be six and 17 respectively out of the top 25 currencies, and the Hong Kong dollar moved up two places and the Malaysian Ringget up three.

What Goes Up…

Balancing the currency winners in the first quarter of the year, there are other currencies and destinations which have declined in the League. The biggest fallers in the first quarter were the Canadian dollar, Barbados Dollar and Gambian Dalasi, each experiencing a decline in sales levels year on year and four or five places in the currency league table.

Summer Hot Spots

Looking at the season ahead, Perrin gives his thoughts on the winners and losers for 2010, “Recently, we have seen the South African Rand rise up the American Express league table and with the World Cup around the corner, it’s very likely to have a successful year.

"The Euro has steadily increased in terms of volumes for the first quarter of 2010, and if the sterling continues to appreciate against the Euro we could see the return of the love affair with European mini-breaks".

Perrin continues, “The favourites of 2009 are likely to continue their popular streak into the summer of 2010. We expect Spain to remain the number one package holiday destination this summer for British families and 2009 currency climbers - Turkey and Egypt - are likely to continue their growth in popularity. This could be due to the increasing popularity of the all-inclusive holiday versus the pay as you go trip.”