Pound to dollar exchange rate hits highest level since Brexit vote – so should you buy holiday money now?
Sterling has risen by 0.2 per cent to $1.437, beating a previous high set in January
HOLIDAYMAKERS going abroad this summer could get more dollars for their pound if they get their travel money today.
The pound has risen to the highest level against the dollar since the Brexit vote in a huge vote of confidence for Britain as we enter trade talks within weeks.
It gained more than 0.2 per cent to $1.437 this morning, before falling back slightly.
If the pound ends the day higher, it will have made gains against the dollar for seven consecutive trading days.
The pound was also going strongly against the euro, reaching about €1.1582, its highest level since May last year.
These are the rates at which banks are buying and selling the currencies between each other.
Foreign exchange companies set their own rates, and often include a commission when they sell you foreign currency.
Today, you'll get about 1.15 euros and 1.42 US dollars for every £1.
So we spoke to some currency experts to get their view on what holidaymakers should do.
Andrew Hagger, of, said that today looks like a good opportunity to sort out some holiday money while the rates are good, especially if you're off to the States.
ALTERNATIVES TO HOLIDAY CASH
BEFORE you go on holiday, you can make sure you’re prepared to get the best rate.
- A specialist credit card, such as the Creation Everyday or Halifax Clarity Mastercard, are a good way to secure the best rates and avoid paying fees.
- You MUST remember to pay these off in full every month.
- If you want to lock in a rate then you could get a pre-paid card from the likes of FairFX, Travelex or the Post Office.
- Beware of fees, as some charge you for loading them with money, spending and withdrawing cash.
- MoneySavingExpert.com recommends Mastercard’s Revolut, Weswap and Monzo - but check the terms and conditions of each card before applying.
He told the Sun Online: "It’s a sensible move to take advantage and get more dollars to the pound as it will make your trip to the Big Apple that much cheaper – more cash in the pocket is always a bonus!"
"The big positive about buying while the exchange rate is up means that you lock in at that exchange rate."
"There's no guarantee that rates won't get even better over coming weeks, but it still makes sense to purchase a little at this time when rates are the best for almost 2 years."
The euro has also strengthened against the pound today, which means you'll get more euro for your pound.
One way to save money on foreign currency is with a specialist currency card, like the ones provided by .
More about currencies and holiday money
You top these cards up online using pounds, and they work like a normal debit card when you're abroad - but without the fees.
This has the added bonus of not exchanging a penny more than you need, and you're saved the hassle of carrying loads of cash everywhere.
Andrew Hagger added: "It's probably best you've got a prepaid currency card that you can top up as buying physical currency by post will mean paying delivery charges if you're only buying £200 or £300 pounds worth."
If you're worried about not getting a good deal Hannah Maundrell, editor-in-chief of , said buying half today and half closer to the time you're travelling, means you won’t feel so bitter if it doesn’t go in your favour.
Why it pays to pay in the local currency
HOLIDAYMAKERS are often given the choice between paying in pounds or euros when using a debit or credit card in Europe, either for withdrawing cash or in shops and restaurants.
That’s because when you choose to pay in euros your bank or credit card company work out the currency conversion for you.
If you opt to pay in the pound then this calculation, known as the dynamic currency exchange, is left up to the foreign bank, shop or restaurants bank.
Earlier this year, we reported on how Martin Lewis, founder of MoneySavingExpert.com, was reminding readers to always pay in the local currency if they are given the option.
She added: "You never know which way currency will go - trying to predict what will happen to the exchange rate is impossible, so if you have a holiday booked it makes sense to purchase a little whilst the going is good."
Use comparison tools like to compare, pick-up and pre-order rates.
It’s also worth checking out local independent bureaus on the high street near you.
QUIDS IN Pound to dollar exchange rate – sterling holds ground against US currency
But whatever you do, don't buy or sell currency at the bureau in the airport as the rates are really poor and you'll get a bad deal.
Airport currency exchange kiosks know they've got you trapped, so they can charge ridiculous commissions or offer rubbish rates.
If you do leave it until the last minute you can arrange to pick up your currency and secure a better rate.
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