Buy your American travel money soon!

February 26th 2010, The Currency Exchange Site analyst

The pound has been steadily declining against the USD since late Jan from a high of $1.646 to $1.528 on the 25/02/2010.

In contrast the pound has stayed pretty much stable against the Euro for the last few weeks. Sadly, our hope that insecurity about the Euro and Greece’s debt problems would impact on the Euro – Pound relationship has not materialised. Instead the pound has been suffering alongside the Euro against the dollar.

Why the decline?

The pounds strength has been impacted by poor economic results for the start of 2010. Official figures show a decline in business investment in January 2010, and analysts fear that this will result in traders and investors continuing to sell the pound in favour of the dollar, exacerbating the pounds decline.

This decline in investment, combined with recent weak economic data has prompted analysts to fear that the UK may be in for a double dip recession.

So, for anyone travelling to the US in the coming months, our advice is to buy your travel money soon before the currency exchange rates decline further.

The hidden costs of low-cost airlines

February 17th 2010, The Currency Exchange Site analyst

If you have been searching for half-term flights or planning Easter or summer vacations, you may have started to get frustrated with the number of hidden fees associated with ‘low-cost’ airline carriers. An issued discussed in several recent articles, including The Guardian and Elliott’s blog.

If you need to check in baggage, check in online or pay with a debit or credit card, to name a few, you will often be charged extra - as much as £15 for a small bag on Ryanair. However, one way you may be able to save money without having to trim down your luggage or stock up on water and food in departures before you board is in the final stages of your online payment with Ryanair…..

If you are booking a flight from Europe back to the UK, you are quoted a price in Euros. When it comes to payment, Ryanair encourages you to buy a ‘guaranteed’ price at that time, or pay later. The Guardian investigated this only to find that Ryanair are using dynamic currency conversion and so your payment is often subject to a worse foreign exchange rate than most banks or credit card companies would provide – effectively charging you more for your flights than you would pay if you take the ‘pay later’ option.

So if you are buying flights online, if you are given the option of paying in pounds or Euros, check how good the exchange rate you are being offered is before you agree!

For more information on dynamic currency conversion, have a look at our FAQs, where we explain this is more detail.

Currency Exchange Rates & Cost of Living - Combine to Find the Cheapest Destinations

February 2nd 2010, The Currency Exchange Site analyst

The Post Office’s recent holiday money report and holiday costs barometer highlight the variation in the pound’s strength against different currencies between Jan 09 and Jan 2010.

Despite the pound’s weakness against the euro in the last year, oscillating close to parity, it has grown in strength against some currencies. Jamaica, Egypt and Dubai have seen the greatest decline against the British pound, followed by the US dollar, Thai baht and Turkish lira to name a few. A trend that has not gone unnoticed by holiday makers and travellers, with the Post Office euro sales reported to be down 14% in 2009.

However, in addition to currency exchange rates, the relative cost of living in different destinations has a significant impact on travel money costs and budgets. For example, although the Turkish lira has declined in value against the pound, the rise in cost of typical holiday items has resulted in a 44% price hike in holiday living costs. Jamaica, although not as expensive as Turkey, is still almost double the cost of Hungary, Thailand and even Spain, the cheapest ‘Euro’ destination. To review the relative costs of living or holidaying in different destinations have a look at the Post Office’s holiday costs barometer.

Overall, the pounds rise against certain currencies, and recent gain in strength against the dollar and euro implies that 2010 will be a better year for the UK traveller.

Freezing Weather, January Blues and a Weak Pound?

January 14th 2010, The Currency Exchange Site analyst

The new year is always a difficult time with January blues in full swing. However this year the freezing conditions and heavy snow fall are adding to many people’s woes. On top of this, the pound has remained weak against currencies such as the Euro and Dollar. However, are currency exchange rates starting to look up as rumours that the worst is over start to sound more confidently?

Over the past three months, despite a steady decline in strength against the dollar the pound has shown a resurgence in the new year, with rates at $1.62: £1 vs $1.59:£1 around Christmas. A trend reflected by the Euro – dollar relationship and the fluctuating euro – pound relationship where rates of 1.12 euros to the pound can be obtained at the moment.

What the future holds for these rates is uncertain, but by tracking the exchange rates in advance of your trip you can select the best time to buy to get the best rates. Now is the time to move away from airport currency exchange providers and look at online currency providers as well where lower overheads allow retailers to provide consumers with some of the best exchange rates in the market.

Save money with prepaid currency cards when you travel

December 8th 2009, The Currency Exchange Site analyst

As the usage of plastic increases in the UK, research by Exchange-Currency.com indicates that over 40% people will use their debit cards abroad, while another 30% use credit cards. However, you pay (literally) for using your debit or credit card abroad. This can add significant amounts to your holiday spend with interest charged on all credit card cash withdrawals (of foreign currency), fees for every transaction, ATM withdrawal and no control over the foreign exchange rates applied.

However, recently travel money providers have launched a range prepaid currency cards such as MyTravelCash and Barclays travel card. These cards are denominated in a currency, usually dollars, euros or pounds, and issued by Mastercard or Visa so can be used just like your normal plastic. Taking your travel money abroad on plastic, as a prepaid currency card allows you to protect your money against theft and loss as well as allowing you to spend as you would do at home, by card!

What are these cards and why should I use them, you ask. Well, in addition to protecting you from theft and loss with the CHIP and PIN capability these cards offer great exchange rates, low or zero transaction fees every time you make a purchase, and low ATM fees.

When you load your card, you lock in your exchange rate, so if you monitor the rates for a few days, chose the best exchange rate then you are instantly saving! You can then shop, or withdraw cash just as you would with your usual plastic but with the added benefit of knowing there are no hidden fees or surprises waiting for you on your statements back home!