Pound boost for late winter holidaymakers
Sterling is close to its highest level against the euro since the immediate aftermath of the EU referendum, with tourist rates also at recent highs.
The pound is fetching more than €1.17 in bureaux de change, but there are warnings that far worse rates are offered in airports.
Will the pound get stronger against the dollar?
The short answer is: it depends who you are. You are most likely to notice the exchange rate when you travel overseas. When the pound is strong against the dollar, for example, you get more dollars for your pounds. So the stronger the pound, the cheaper it is to buy things abroad.
Is the pound likely to drop?
The pound fell 0.6% against the dollar, reaching its lowest level since Dec. 25. It has dropped around 2% in 2020. At the start of the year, few investors forecast the Bank of England’s policy rate would fall in 2020.
Why is the pound so strong?
Higher demand for those bonds makes the value of the currency stronger. If the country slows down printing of their money or pays off their bonds, that lowers the supply of that currency making the currency stronger too.