Exchange rate forecast for school half term getaways
There is good news for families planning half term transatlantic trips as sterling today hit an eight month high against the US dollar. At a tourist rate of $1.49 to every £1, Post Office Travel Money said that UK tourists travelling to the USA during the October half term holiday would have almost 11 per cent more to spend than when sterling was at its weakest against the US currency in May 2010.
However, families travelling to Europe for late season sun will fare less well than during the school summer holidays because the UK pound has hit a six month low against the euro and is now worth 8.5 per cent less than at its 2010 high point in March.
Worse still, Post Office Travel Money said that sterling was at its weakest since the beginning of 2009 against the Turkish lira, its third bestselling foreign currency. £1 currently buys just TL2.07, almost six per cent less than 12 months ago and even less (- 8.4 per cent) than in May.
Sarah Munro, Post Office Head of Travel Money said: "Florida is a magnet for UK families during half term and they can look forward to having more dollars in their pockets as they hit the Orlando theme parks as sterling is at its strongest for eight months.
"Sterling has been on the slide against the euro for the past three weeks, dropping over five per cent in value in that time, meaning eurozone-bound families will get less foreign cash for their pounds. It’s not all bad news though - the exchange rate is still over four per cent better than 12 months ago.
"Although families cannot do much about exchange rates, they can save precious pounds by purchasing holiday cash in advance rather than waiting until the last minute and being hit with poor rates and commission at the airport. And given the turbulence in the industry this year with the ash cloud and several high profile travel firm collapses, they should also consider a currency provider, like the Post Office, which offers the peace of mind of a ‘no-quibbles’ refund if their trip is cancelled due to unpredictable events."
The Post Office has pledged that customers who have purchased holiday cash will not be out of pocket if their trip is cancelled - a ‘no questions’ refund at the original price paid on currency purchased for holidays cancelled for any unpredictable ‘events’ such as a tour operator or airline collapse.
To qualify for a refund, Post Office customers will need to provide their currency purchase receipt as well as evidence of their holiday cancellation in the form of an invoice, tickets or email confirmation from their tour operator as proof of booking.
Euros are available over the counter at more than 8,500 Post Office branches, while the US dollar and Turkish lira can be purchased on demand at over 4,000 of these. Over 70 currencies can be pre-ordered for next day branch collection at around 12,000 Post Office outlets or online at postoffice.co.uk, where next day home delivery can be arranged.
Post Office Travel Money Exchange Rate Movements
EURO
At a tourist rate of €1.05 in Post Office bureaux today, sterling has lost 8.5 per cent against the euro since its strongest point during 2010 (€1.1475 on 29 June) but holidaymakers will still receive 4.2 per cent more euros for their pounds than a year ago.
US DOLLAR
After dropping in value against the US dollar significantly during the late spring, sterling has recovered 10.9 per cent ($1.49) from its year low point (19 May) and is only 3.3 per cent weaker than at its 2010 high point ($1.54 on 19 January). Compared with a year ago, UK tourists will now get just 0.6 per cent fewer dollars for their pounds.
TURKISH LIRA
The tourist rate for the Turkish lira is at its lowest this year and since 2 January 2009. Compared with 12 months ago, £1 will buy 5.8 less liras and this fall is even greater (-8.4 per cent) against the year high point on 27 January when sterling was worth 2.2608.