Sterling stood just above the 1.16 handle yesterday as it did not benefit from the weaker dollar like other currencies did, according to one finance expert. The pound has been trading from the mid-to-low €1.16s since the start of the week, but it has this morning dropped further.
However, sterling did perform better yesterday than Monday, where it experienced a “quiet day” and remained in the low-€1.16s.
This is despite the pound hitting new highs for 2021 over the weekend.
On Monday, Mr Brown said: “Sterling had its best day against the euro since last December yesterday, rallying to three week highs.
“This is as the market reacted positively to the weekend’s election results, and the perceived lower risks of a second Scottish independence referendum.”
So, what does this mean for your travel money?
The ban on international travel was lifted on Monday, May 17, meaning that Britons are now permitted to holiday abroad.
The UK’s travel traffic lights system means that holidaymakers can travel to “green” countries without having to quarantine on return.
These destinations include Gibraltar, Iceland, Singapore, Australia, and New Zealand.
However, travel experts have warned that “extra caution” is due in the coming weeks when booking holidays and swapping travel money.
James Lynn, CEO and co-founder of Currensea, said: “While it’s excellent news international travel is opening up, the proposed traffic light system will mean there will still be an element of disruption this summer, both to travel companies and consumers.
“Extra caution and careful planning will be really important when it comes to planning holidays this year – and keeping abreast of the latest updates will be key.
“Financial safety when travelling must also be top of mind for consumers. Sudden changes and cancellations, which remain likely could put travellers at risk if the right precautions aren’t taken.”
In other travel news, British Airways launched £40 PCR tests yesterday to help drive down the price of COVID-19 testing before travel.
BA’s CEO Sean Doyle said: “We are working hard to drive down the costs, so we just launched a £40 PCR test today.
“We are working with the Government and are pushing them to drive down the costs of testing.”