Sterling up 10% against the euro

12 July 2012

Sterling has strengthened by almost 10% against the euro over the past year, according to research from Moneycorp.

Sterling touched a high of 1.27 this week, which represents almost a four-year high.

Meanwhile, the pound has risen strongly against the Hungarian forint, the Polish zloty and the Romanian leu, gaining 21.4, 18.9 and 16.9% respectively over the past 12 months.

On an exchange amount of £500, a stronger sterling now means holidaymakers get £107 extra on the forint, and an extra £94.50 and £84.50 on the zloty and the leu. Euro-area holidaymakers now benefit from an extra £48.50 per £500 exchange.

Outside of Europe, sterling has appreciated by 23% against the Brazilian real and 18.4% against the South African rand since last June.

Good news for holidaymakers

Olann Kerrison, currency expect at Moneycorp, says the pound's strength will be "welcome news" for holidaymakers.

"Cities in Eastern Europe such as Budapest, Prague and Dubrovnik, not only offer a great return on currency, but also offer a much lower cost of living, meaning that in relative terms your holiday money can go even further," he says.

This article was written for our sister website Money Observer

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