Euro transactions up by a third

With the current strength of the pound, many Britons are buying their foreign currencies now, ahead of the summer holidays.

According to Thomas Cook, there has been a jump in the number of foreign currency customers and the amount that they are spending. The company adds that the number of euro transactions completed between the end of February and early March was up more than a third compared to the same period last year. What's more, sales by value were up 65 per cent.

In the last two weeks, Thomas Cook has seen more than £22.8 million worth of euro sales. While much of this will be for customers preparing to go abroad in the near future, some may also be buying because they see the prices are favourable.

Speaking to BBC Radio 5 live, Fraser Millar, head of Thomas Cook's foreign exchange division explained: "Some customers are forward buying for holidays they have already booked, while others are buying now before they have even booked their holiday.

It's not just Thomas Cook that has seen a surge in sales. the Post Office has reported that their online sales are up more than a half compared to this time last year. They say that in one week in late January, the pound reached 1.34 to the euro and this led to a 363 per cent spike.

High-volume currency brokers are also seeing an increase in transactions, with one firm reporting a 286 per cent increase in sales between February and April, compared to the same period last year.

According to market analysts, the pound is benefiting from the UK economy's relative strength and the problems in the Eurozone. Sterling is also performing well in other markets – it's especially strong against the Turkish lira and Thai baht, but remains weak against the dollar.

Experts also say that customers often look at currency values before deciding on where to go on holiday – in order to get the best value during their getaway.

"People seem aware of this and are picking places like Mexico and Mauritius, where they know they can get more for their money," says Andrew Brown from Post Office Money.

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