Stronger pound gives a boost to holidaymakers

HOLIDAYMAKERS are getting a boost to their spending power because the pound's value has risen in the vast majority of popular destinations.

- Robert Kellaway

Sterling has strengthened compared with a year ago against 21 out of 25 currencies analysed by Post Office Travel Money.

Investors believe interest rates will stay higher in the UK for longer than other countries making the pound more attractive.

The value against the euro is up 3.8% and US dollar 5.5%.

But if you choose Turkey, which has suffered an economic crisis, sterling has soared 72.9% against the lira.

In Kenya it is up 20.9%, 15.7% in Japan, 12.7% in the Czech Republic, 9.9% in Thailand, 9.2% in South Africa and 5.8% in Norway.

However, the pound was down 4.3% against the Polish zloty, 2.7% in Costa Rica, 1.4% to the Swiss franc and lost 0.8% to the Mexican peso.