Holidaymakers urged to buy travel money now
Following last week's election result, sterling is riding high against the dollar and the Euro, bringing the promise of cheaper summer holidays and foreign goods.
With fears over a messy coalition allayed, and the markets generally positive about the prospect of another Conservative government, the pound is currently trading at $1.56 against the dollar - its highest rate this year. Against the Euro, it's €1.39.
The figures are good news for British holidaymakers, whose pounds will now go a little further in Europe and the US.
"As the pound continues its seven-year high against the Euro this means that holidaymakers will continue getting more bang for their buck when buying their travel money," says Karen Harkin of Asda Money.
"At Asda Money we've seen a massive increase in returns for our customers. Those purchasing £500 worth of Euros today would receive €99 more than they would have done two years ago, a 17.5% growth."
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However, the pound's rally may not last all that long, as the country settles down and the implications of the strong SNP showing begins to trickle through. The economy is still growing very slowly, and David Cameron's pledge to hold a referendum on EU membership could damage sterling by making overseas companies more reluctant to invest in the UK.
"For holidaymakers and for those going away this bank holiday weekend and over the summer, they should consider making the most of sterling's current strength while it is still riding high on what is perceived to be positive news," says FAIRFX currency expert Darren Kilner.
"Crucially, keep a close eye on currency rates to avoid losing out on holiday spending money should anything change as the impact of the election result becomes clearer."
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Also likely to affect holidaymakers' spending money this week is tomorrow's deadline for Greece to repay $744.9 million to the International Monetary Fund (IMF). If it fails to do so, it risks defaulting on its loan and potentially facing bankruptcy.
"The Greek Tourist Board recently issued a notice to warn holidaymakers to take Euros in cash with them when they travel to Greece in case the country decides to switch off their cash machines," says Kilner.
"If you are going to Greece in the coming months, there is no need to panic. We suggest planning your holiday money wisely across cash and a prepaid currency card with a credit card as backup in emergencies rather than relying on only one form of payment."
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