Sterling falls to seven-month low against euro just days before school holidays

Families embarking on a summer holiday abroad when school terms end this week are being hit with a fall within the value of the pound.

Sterling is trading at around 1.11 euros, that is its weakest level since December 2021.

The pound has lost 6% of its value from the currency because the oncoming of May, meaning the amount of euros UK tourists receive when exchanging lb500 has fallen from around 580 to 555.

Holidaymakers going to America face the worst exchange rate for more than two years, with sterling trading at just 1.24 US dollars.

This represents a fall of around 7% since March.

The drop in the value of sterling comes amid fears over a no-deal Brexit, following the Conservative leadership candidates didn't address concerns about the uncertain economic climate.

Analysis by Post Office Travel Money discovered that the pound has also declined against a number of other currencies used in popular destinations in contrast to this time around this past year, such as Thailand (down 13%), Bali (down 8%), Japan (down 9%) and Barbados (down 5%).

However, sterling is continuing to grow in value against currencies used in Turkey (up 14%), Iceland (up 12%) and Nigeria (up 2%).

Despite the weakening of sterling from the euro, a recent Family Holiday Report authored by Mailbox Travel Money found that resort prices have become cheaper for UK visitors in over fifty percent of 15 popular European family destinations over the past Twelve months due to a drop in local prices.

Nick Boden, who leads the firm, said: “For those who have not yet booked their trip abroad and are looking for a late deal, it makes sense to pick a destination where sterling remains stronger.

“A improvement in Mailbox sales for that Turkish lira shows that individuals are switching on to the fact that the prices of meals, drinks along with other staples in resorts and cities can also add significantly for their holiday cost, so these are just as one increasingly essential consideration.

“Picking a destination where prices on the ground are low can outweigh the outcome of a weak exchange rate, but a destination where costs are cheap and sterling is robust is the best bet.”