Savvy travellers benefit from The Budget

Millions of euro-zone holiday makers are set to cash in on The budget after it has boosted the value of the pound to a new 18 month high against the euro.

Despite widespread spending cuts and tax increases, which will leave many Brits feeling worse off, the markets reacted positively to Tuesday’s budget cuts pushing up the value of the Pound to 1.18 against the euro. It’s the highest level in 18 months and a 12 per cent increase since March 2010, when the pound was at its lowest against the euro this year.

It means Brits heading abroad will get an extra 45 Euros or a saving of £38 when ordering £500 compared to the same amount just over three months ago. The Pound also increased a quarter of a per cent on the US Dollar immediately after the Chancellor’s announcement.

Analysis of Travelex sales data has identified that savvy travellers are already making the most of the Pound’s high value with online sales of Euros up by 14 per cent compared to the same period before and after the budget in 2009.

Travelex Director David Swann: "The combination of spending cuts and tax increases in Osborne’s budget are brutal, but the tight measures have been well-received by the market, which has proved to be good news for Sterling and likewise for Brits heading abroad.

"We have already seen some knock-on effects of the aggressive approach to tacking the massive debt with Moody’s credit rating suggesting the UK will retain its AAA rating. Yesterday’s Bank of England minutes also revealed that one committee member voted to increase rates for the first time in many months, another positive indicator for the Pound."

Travelex suggests travellers wanting to get the best value purchase currency online to take advantage of the Travelex Price Promise and to take a combination of cash and prepaid cards. The Cash Passport prepaid currency card allows customers to lock in their rate at the time of load or reload and benefit from fee-free purchases or cash withdrawals*.

*Travelex won’t charge for overseas purchases or withdrawals, but some ATMs or retailers may do.

Value of the Pound:
£1 : €1.180
£1 : $1.4984

Rates correct at 12pm at Travelex.co.uk on Weds 24th June 2010