BRITISH holidaymakers heading to Europe this Bank Holiday weekend have been dealt a huge blow after the pound plummeted against the euro over the past week.
Millions of travellers heading away for the last public holiday until Christmas can now expect to get a rate of just €1.36 against sterling compared to a seven-year high of €1.44 just a month ago in mid-July.
It means that British families will see their money buy a lot less in Europe than it would have done only a couple of weeks ago.
The steep decline is in part thanks to the Chinese stock market crash, which has seen investors piling money into the euro and pushing its value up, according to exchange specialist FAIRFX.
However, British jet-setters travelling further afield will happily see cash go further in countries with higher exposure to the fallout from China's slowing economy.
Britons heading to Australia and New Zealand can now benefit from the best rate against the country's two currencies in more than seven years, found FAIRFX.
The pound is also at multi-year highs against the currencies of Thailand, Malaysia and South Africa.
Darren Kilner, currency expert at FAIRFX, said: “Unfortunately, the exchange rate for Brits buying the euro hasn’t fared as well and is now well off the highs seen earlier in the year.
"However, the Chinese situation has also had a dramatic impact on the Australian and New Zealand dollar and South African Rand, so Brits who are looking to travel to these countries will benefit from some of the best currency exchange rates against the pound in years.
"With markets in chaos, keep a watchful eye on currency movements.
"Whether you need to arrange your travel money or make an international money transfer, keeping abreast of the news and currency movements is key to making sure you don’t lose out when buying currency."
Travellers planning a trip abroad can sign up to rate alerts with online currency providers, which will notify users when markets rise to a level at which they are happy to buy their travel cash.
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Wednesday 26 August 2015, 05:44pmPrevious Next