Pound climbs against euro and dollar as MPs head back to parliament
STERLING'S value against both the dollar and euro remains at a high as MPs go back to parliament following last week's general election win for Boris Johnson.
This means that, currently, £1 would get you €1.19 or $1.33.
The pound hasn't been at this 1.1968 level against the euro in more than three years.
It last hit these heights before the UK's referendum to leave Europe on June 23, 2016.
Meanwhile the dollar remains at more than an 18-month high against sterling, standing at 1.3332 - levels not seen since April 2018.
It comes after the Tories swept to victory in last week's general election, with Mr Johnson retaining his role as Prime Minister and preventing the likes of Labour's Jeremy Corbyn and former Lib Dem leader Jo Swinson from snatching power.
Ian Strafford-Taylor, chief executive of international money firm, Equals (previously known as FairFX) said: “Since the results of the general election were announced on Friday, the pound has consistently stayed above 1.19 against the euro and above 1.33 against the US dollar and this morning it shows no sign of dropping as Boris Johnson heads back to parliament.
“The rising pound is great news for those travelling into Europe and to the USA over the festive break, giving a boost to holiday spending thanks to improved rates."
How to get the cheapest holiday cash
WE spoke to comparison site Money.co.uk to find out how you can guarantee the best rate when you go on holiday
- Don’t buy cash at the airport – You’ll always be able to beat the rate with a bit of forward planning.
- Compare travel money companies online – Factor in delivery costs and choose the option that gives you the most cash to spend on holiday. If you’ve left it until the last minute order online for airport collection so you get the best of both worlds.
- Use comparison tools – enables you to compare pick-up and pre-order rates.
- Don’t pay for travel money with a credit card – It’s likely you’ll be charged a cash withdrawal fee which adds to the cost.
- Top up a prepaid card to lock in your rate now – Choose your card and read the T&Cs carefully as some apply hefty fees.
- Always choose to pay in the local currency rather than sterling – This will help you avoid sneaky exchange fees.
A mini cabinet re-shuffle is now expected to take place today to replace culture secretary, Nicky Morgan, and Welsh secretary, Alun Cairns - both of which had resigned.
MPs will then be sworn in at the House of Commons tomorrow, before the Queen's Speech is due on Thursday outlining the new government's legislative programme for the coming year.
On Friday, the withdrawal bill will be brought back into parliament for debate, if the new speaker Lindsay Hoyle allows it, with the UK still planning to leave the EU by January 31.
Of course, the pound still hasn't recovered to its pre-referendum heights against either the dollar or the euro.
It had been as high as 1.58 against the dollar back in 2015 and at 1.44 against the euro around the same time.
And Mr Stafford warns that it's current rebound may start to falter by January.
He said: “With Brexit top of the agenda and the Prime Minister promising to leave the EU by the end of January 2020, the pound may not stay at these heights as progress on Brexit unfolds.”
More on money
The value of the pound jumped immediately after Boris won, posting its biggest rally in three years.
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Plsu, here are the best credit cards to use abroad – from Halifax to Santander.