Why you should think about buying your holiday euros today
09:04 GMT, 18 April 2012
British holidaymakers heading to Europe this summer should consider snapping up their currency now after the pound rocketed to a 19-month long high against the euro.
Each 1 was worth €1.21 yesterday — that’s 7 per cent more than the same point in April 2011.
It means that in theory 500 could buy you €605 — compared to €560 last year.
However, you are likely to receive less than this if you buy your currency in bureau de changes and online currency exchange websites.
Bargain: Currency exchange firms say they are already experiencing a rush of customers seeking to lock in the rates before their summer breaks
For example, if you exchanged 500 at
currency exchange firm Travelex this week, you would have received €595
at a rate of €1.19 for 1. That is still 50 more than you would have
got at the same time last year, when the rate was €1.09 for 1.
The single currency has weakened as a
result of financial problems in the eurozone while the pound
strengthening has been aided by better sales on the UK High Street.
Currency exchange firms say they are
already experiencing a rush of customers seeking to lock in the bargain
rates before their summer breaks.
‘This is great news for Brits heading
to the eurozone as they’ll get an extra 7 per cent compared to the same
time last year,’ says Travelex spokesman David Swann. ‘With the Easter peak over, now is a great time for Brits to grab a bargain in Europe.’
If you’re heading overseas in the next few weeks you can also consider
buying a euro prepaid currency card, which will allow you to lock in a
currency rate when you load it.
However, check the small print for hidden charges before you buy — some
cards will hit you with fees of up to 10 to cash them in on your
return. And avoid cards that charge you for setting them up, making
purchases, loading and withdrawing cash.
And remember to load the card with the
correct currency, as you can also end up with extra charges for using
it outside of the currency it was designed for.
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