The pound to euro exchange rate has been going through a turbulent time since the referendum in 2016.
Sterling plunged even further today hitting a nine-month low against the euro, amid new fears of a no-deal Brexit.
This week the exchange rate went from €1.12875 to lows of €1.10814 to the pound.
Today it has recovered slightly but is still extremely low at €1.11168 to the pound (at time of writing).
If you’re planning a holiday to Europe this summer you might be wondering if the exchange rate is going to improve or ultimately get worse.
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Last summer the exchange rate hovered around €1.14 to the pound and this year it is has remained even lower at around the €1.12 mark.
Now, the exchange rate has fallen below €1.12, making foreign holidays even more expensive for Brits.
So, when is the best time to buy euros?
Writing on his website Moneysavingexpert.com, Martin Lewis discusses whether Brits should buy their holiday money now or wait.
“The problem is there is no law of exchange rate gravity, just because a currency has dropped, it does not have to bounce back,” said Martin.
“Markets move based on expectations, so if interest rates go up, but not as much as was thought, that could make the exchange rate drop.”
“Yet many other factors affect the pound’s strength – general economics, speculation, political stability and more,” he added.
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It’s difficult for anyone to predict how the exchange rate will be affected in the coming months.
However, if you’re unsure when to buy your euros the money guru suggests buying half now and half later.
“Buy roughly half what you need at today’s best rate – whether in cash or on a prepaid card (see how to get today’s best rate), and then for the rest just rely on the best rate on the day you spend,” he said.
Caxton FX Analysis, Alexandra Russell-Oliver, also suggests hedging your bets by buying some now and some later.
Talking exclusively to the Daily Star Online she said: “For anyone uncertain about whether to buy now or wait, one option is to hedge your bets, purchasing half of your currency requirement now, and half later.
“That way, you will benefit from the higher exchange rate on at least half of your currency.
“Regardless, purchasing holiday money in advance, such as through a pre-paid card like Caxton’s, means you will know exactly how much you have to spend and can avoid paying airport rates.”
Martin also revealed an easy way Brits can protect themselves against “currency swings”.
He said: “A few bureaux de change’s terms can be manipulated to give you short-term protection against currency swings.
“These allow you to order for collection at today’s rate, and cancel in up to 14 days’ time.
“That way if the rate weakens you’ve locked in; if it improves you just cancel and buy at the new better rate – it’s a bit like an insurance policy.”
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