British holiday makers heading to Europe received a welcome boost last night after the pound soared to a seven-year high against the single currency. Sterling rose above 1.35 euros – a level not seen since January 2008 – giving families more ‘bang for their buck’ on the Continent. Figures from currency exchange firm Travelex show that British families changing £500 will now get 655 euros, compared with 585 euros a year ago. As recently as August they would typically have got just 556 euros – some 99 euros less than today. Soaring sterling: Buoyed by the recovering British economy, the pound has soared to a seven-year high against the euro in a timely boost for holiday makers heading to the continent . The pound has risen 5 per cent against the euro this year and 12.5 per cent in the last 12 months buoyed by the recovery in the British economy. Many experts believe the pound will strengthen even further against the single currency in the coming months – making family holidays cheaper still this summer. One analyst said it could reach 1.55 euros, its highest level since late 2002. David Swann, of Travelex, said: ‘It’s a great time for Brits to be planning their Easter trip or summer holiday as the increase in the pound’s strength will make a considerable difference to their budgets.’ Brian Jamieson, of travel money business Centtrip, said: ‘Sterling’s strength against the euro is great news for UK consumers and businesses alike when they visit the EU.’ The euro has tumbled against a host of currencies from around the world in recent months as the threat of recession and deflation hangs over the single currency bloc. The fall accelerated last month when the European Central Bank outlined plans to pump at least £850billion of emergency funds into the eurozone’s struggling economy. The prospect of a flood of cash being created through so-called quantitative easing has lowered the value of the euro. Tumbling: The euro fallen has against a host of currencies from around the world in recent months as the threat of recession and deflation hangs over the single currency bloc . The situation in Greece, where the new Left-wing government is at loggerheads with the rest of Europe over its debts, has also undermined confidence in the single currency. It is feared that Greece will default on its debts and be forced to leave the euro – plunging the region and the currency back into crisis. Chris Saint, head of currency dealing at Hargreaves Lansdown, said the pound’s rise against the euro ‘has a bit further to run’. He blamed the ‘impasse between Greece and the rest of the eurozone’ and added that ‘there doesn’t seem to be much common ground’. Andrew Sentance, a former Bank of England official and now senior economic adviser at PricewaterhouseCoopers, said the pound is gaining strength as currencies adjust to European quantitative easing as well as ‘poorly performing euro economies and Greek uncertainty’. Harry Adams, of currency specialist Argentex, said he would ‘not be surprised’ if the pound reached 1.55 euro in the coming months – raising concerns for British exporters as the price of goods made in the UK rises for buyers in the eurozone. He said: ‘Europe is once again sending shivers down the spine of financial markets, forcing investors to take caution and sell their euros to more stable currencies such as the dollar and pound. ‘This has pushed the euro to a fresh seven-year low against the pound, dampening Europe’s demand for British goods, causing pain for an estimated 500,000 UK exporters.’
Summer boost sees Britons get more for their money as Sterling soars .
Experts predict pound will strengthen even further in the coming months .
Pound has risen 12.5 per cent against the euro in the last year .
British holiday makers heading to Europe received a welcome boost last night after the pound soared to a seven-year high against the single currency. Sterling rose above 1.35 euros – a level not seen since January 2008 – giving families more ‘bang for their buck’ on the Continent. Figures from currency exchange firm Travelex show that British families changing £500 will now get 655 euros, compared with 585 euros a year ago. As recently as August they would typically have got just 556 euros – some 99 euros less than today. Soaring sterling: Buoyed by the recovering British economy, the pound has soared to a seven-year high against the euro in a timely boost for holiday makers heading to the continent . The pound has risen 5 per cent against the euro this year and 12.5 per cent in the last 12 months buoyed by the recovery in the British economy. Many experts believe the pound will strengthen even further against the single currency in the coming months – making family holidays cheaper still this summer. One analyst said it could reach 1.55 euros, its highest level since late 2002. David Swann, of Travelex, said: ‘It’s a great time for Brits to be planning their Easter trip or summer holiday as the increase in the pound’s strength will make a considerable difference to their budgets.’ Brian Jamieson, of travel money business Centtrip, said: ‘Sterling’s strength against the euro is great news for UK consumers and businesses alike when they visit the EU.’ The euro has tumbled against a host of currencies from around the world in recent months as the threat of recession and deflation hangs over the single currency bloc. The fall accelerated last month when the European Central Bank outlined plans to pump at least £850billion of emergency funds into the eurozone’s struggling economy. The prospect of a flood of cash being created through so-called quantitative easing has lowered the value of the euro. Tumbling: The euro fallen has against a host of currencies from around the world in recent months as the threat of recession and deflation hangs over the single currency bloc . The situation in Greece, where the new Left-wing government is at loggerheads with the rest of Europe over its debts, has also undermined confidence in the single currency. It is feared that Greece will default on its debts and be forced to leave the euro – plunging the region and the currency back into crisis. Chris Saint, head of currency dealing at Hargreaves Lansdown, said the pound’s rise against the euro ‘has a bit further to run’. He blamed the ‘impasse between Greece and the rest of the eurozone’ and added that ‘there doesn’t seem to be much common ground’. Andrew Sentance, a former Bank of England official and now senior economic adviser at PricewaterhouseCoopers, said the pound is gaining strength as currencies adjust to European quantitative easing as well as ‘poorly performing euro economies and Greek uncertainty’. Harry Adams, of currency specialist Argentex, said he would ‘not be surprised’ if the pound reached 1.55 euro in the coming months – raising concerns for British exporters as the price of goods made in the UK rises for buyers in the eurozone. He said: ‘Europe is once again sending shivers down the spine of financial markets, forcing investors to take caution and sell their euros to more stable currencies such as the dollar and pound. ‘This has pushed the euro to a fresh seven-year low against the pound, dampening Europe’s demand for British goods, causing pain for an estimated 500,000 UK exporters.’
pound has risen 5 per cent against the euro this year and 12.5 per cent in the last 12 months Many experts believe the pound will strengthen even further against the single currency in the reached 1.55 euro in the coming months – raising