Travel money: Post Office introduce multi-currency pre-paid card
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The pound to euro exchange rate has “notched a second straight daily decline,” said experts. The fall came yesterday but keeps GBP within the “broad 1.1550 – 1.1710 range” the currency pairing has been operating between in recent weeks. Coronavirus continues to prove a barometer for sterling’s movements today.
The pound is trading at 1.1608 against the euro, according to Bloomberg at the time of writing.
Michael Brown, currency expert at international payments and foreign exchange firm Caxton FX, spoke to Express.co.uk regarding the latest exchange rate figures.
“Sterling trades just shy of the €1.16 handle this morning, having notched a second straight daily decline yesterday,” said Brown.
“Though we remain within the broad 1.1550 – 1.1710 range that the cross has maintained for three weeks now.”
Brown added: “UK labour market data, due this morning, is unlikely to be a significant market mover, hence focus will likely remain on the latest information around the pandemic.”
So what does this mean for your holidays and travel money?
Post Office Travel is currently offering a rate of €1.1231 over £400, €1.1394 for over £500, or €1.1453 for over £1,000.
There is currently much uncertainty over whether foreign holidays will be an option for Britons this summer.
What’s more, new coronavirus rules will be coming into force next week which include a ban on anyone leaving the UK without a “reasonable excuse.”
So what should Britons do about holiday money?
James Lynn, co-CEO and co-founder of travel card Currensea, advises against purchasing while volatility remains.
He said: “It may be tempting to take out foreign currency in anticipation of a future holiday, while the exchange rate is favourable.
“However, I would advise against this. Market movements are often more marginal in reality than they appear.
“Especially during this volatile time, it’s safer to keep hold of your money in your UK bank account than purchasing or exchanging for holiday money.
“Once we are allowed to travel again, this will signify the end of the COVID bump and I anticipate this will mean the Pound has improved even more significantly.
“On top of this, when it comes to your consumer rights, using a travel card will always be a safer and cheaper option than using cash.”
Lynn continued: “Multi-currency travel cards that enable you to spend in the local currency (in Currensea’s case directly from your own bank account, cutting out international charges) will always be the best way to save money.
“This will enable you to spend directly with local services while on holiday using the ‘real-rate’ and only take out cash if needed from an ATM.”
The expert added: “The absolute no-go is to take out money from an airport bureau de change which can result in you being hit with an exchange rate of up to 10-20 percent when exchanging or buying back cash.”
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