Half-term holidaymakers face higher costs abroad
British holidaymakers going abroad for the bank holiday, upcoming half term or summer break, will see a dramatic decrease in their spending power, according to a foreign exchange specialist.
Moneycorp said the pound has become weaker against 80% of the top global currencies in the last year, including the Euro, the US Dollar and the Australian Dollar.
The pound is now 6% weaker against the Euro since last May, with the current exchange rate at €1.16. This means if holidaymakers were to exchange £500 they would now get £582.30, £30 less than they would have got last year.
The pound is also 4% weaker against the US dollar and 4.7% weaker against the Australian Dollar since last May, with the exchange rate nearly 30% weaker against the Australian Dollar than it was four years ago.
The exchange rate for the dollar is currently $1.51, with consumers now getting £756.05 for every £500 converted.
But British holidaymakers travelling to Mexico will be the worst hit, with the pound 10.5% weaker, meaning you would have £52.47 less compared with last year if you converted £500.
Matthijs Boon, Moneycorp's director of travel money, said: "The weak performance of Sterling over the past 12 months means our summer pounds aren't going to stretch quite as far this year as they did last year."
The currency firm said travellers would have head to long-haul destinations to make the most of their money.
In the last 12 months, the pound is 15% stronger against the Japanese Yen, with Britons getting an extra £74 on every £500 they convert, compared with last year.
Boon added: "Cheaper destination costs will need to be weighed up against the higher price of flights to get there, when compared to hopping on a plane over to mainland Europe."