Pound at a four-week high against the dollar as ministers pressure Theresa May to delay Article 50
THE value of sterling hit a four-week high against the dollar and euro this morning as Theresa May announced a possible delay to Brexit.
Today the PM told the House of Commons that MPs could vote to postpone Article 50 if Britain is heading for No Deal.
The controversial move will mean putting off Britain’s EU exit by weeks or months if MPs still haven’t passed a new divorce agreement in two weeks' time.
The news led the pound to climb to a new high this morning - at the time of writing, £1 would get you around $1.32.
While against the euro, the pound was up around 0.5 per cent and at roughly €1.16.
The currency also rose last night as the Labour party said it could support a second referendum, which has caused outrage among Leave voters.
But even though it's risen in the past few weeks, the pound is still sitting far away from levels seen before the EU referendum, which led it to drop to a 31-year low.
If you're thinking about buying your holiday money now then make sure you only buy half, to safeguard yourself against further falls or rises.
Michael Brown, senior analyst at currency firm Caxton FX, told The Sun: "Sterling has rallied overnight and now trades at its highest levels in a month against both the dollar and the euro.
"The pound’s gains are a result of markets beginning to price in an extension to the Article 50 negotiating period, with reports this morning that the Prime Minister is set to discuss the matter with Cabinet before laying a motion in the Commons this afternoon.
"Though a delay is simply pushing back the exit date, and doesn’t solve anything itself, markets are taking solace in the fact that such a move would delay a ‘cliff-edge’ no-deal scenario.
"Confirmation of such a delay would likely strengthen the pound further in the near-term, though political headwinds remain including the opposition Labour Party calling for a second Brexit referendum."
Meanwhile, Ian Strafford-Taylor, chief executive of foreign exchange firm FairFX, said: "The lack of certainty around exactly how and when Brexit will play out leaves the pound vulnerable to volatility, and it’s very easy for rates to move in either direction.
"If the UK leaves the EU without a deal, we could see the pound fall but it's also possible that the pound will strengthen if the UK and EU can agree a divorce deal."
Is now a good time to buy or sell currency?
IF you're heading off on holiday or have just arrived home and are wondering whether now's a good time to buy or sell currency. Here's what you need to know:
Exchange rates are constantly changing and can go up and down because of any number of reasons.
This means it's almost impossible to even try and time the market, all you can do is make sure you get the best deal when you buy or sell.
Buying currency
Use to compare rates if you're taking cash - it'll tell you where you can buy your cash for less.
To protect yourself against currency price changes, Money Saving Expert Martin Lewis recommends buying a bit now and a bit before you go. He said: "A simple way to guard against currency moves is buy some now, and some just before you go.
"This diminishes the impact of rate moves (good ones as well as bad)."
Also consider a specialist travel credit card, which allows you to spend money abroad without being hit by any fees or hidden charges. For more on travel credit cards you can read our guide here.
And never buy currency at the airport or other ports - it will always cost more.
Selling currency
Use Money Saving Expert's to make sure you're not ripped off.
The Pound suffered a huge fall in November after Dominic Raab quit over "blackmail" Brexit.
It also took a hit against against the Euro and Dollar in July last year after Boris Johnson resigned from the Cabinet.
But it rose again in the beginning of this year after MPs moved to block a No Deal Brexit.
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