Pound euro exchange rate hits highest levels since May thanks to ‘vaccine optimism’
Boris Johnson announces closure of travel corridors
The pound to euro exchange rate has been struggling in recent days, according to experts. But it seems there has finally been a change in the tide thanks to increased optimism regarding the UK’s covid vaccine rollout. However, the UK is still in the midst of fighting its toughest battle against the deadly virus which has taken the lives of almost 95,000 people across the nation.
Prime Minister Boris Johnson said yesterday there is now a “race against time” to vaccinate the vulnerable.
He added: “I must warn people there will be tough weeks to come, but as the vaccine goes in and that programme accelerates, there will be, I think, a real difference by spring.”
So far, around 3.5million people in the UK have received a covid vaccination.
The vaccine figures, and rapid rollout has bolstered the pound to euro exchange rate.
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The pound is currently trading at 1.1292 against the euro, according to Bloomberg at the time of writing.
This is above yesterday’s rate of 1.1244.
The duo have finally managed to break through that 1.1290 handle.
Michael Brown, currency expert at international payments and foreign exchange firm Caxton FX, spoke to Express.co.uk regarding the latest exchange rate figures this morning.
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He said: “Sterling finally broke above the €1.1280 resistance level yesterday, at what felt like the millionth time of asking, to print its highest levels against the common currency since last May.
“The move comes as investors grow increasingly optimistic about the UK’s vaccine rollout, and thus more optimistic about the UK economy’s prospects.
“Now that 1.1280 has given way, a move above 1.13 could follow in relatively short order, particularly if the current optimism is maintained.
“Today’s ECB decision is unlikely to have too significant an impact on the pair.”
So what does this mean for travel money?
Currently, Britons are not prohibited to travel domestically or internationally for leisure purposes.
Only those with an exception are allowed to travel.
The Government website reads: “If you are in England, you should not travel abroad.
“You can only travel internationally if you have a legally permitted reason to leave home.
Post Office Travel is currently offering a rate of €1.0839 over £400, €1.0996 for over £500, or €1.1053 for over £1,000.
James Lynn, co-CEO and co-founder of travel debit card Currensea recommends keeping your foreign currency in a drawer if you can afford to do so.
He explained further: ”The exchange rate has already hit the pound badly because of the third lockdown and if you go on a holiday later in the year you’ll be hit again converting your money back into the currency you need.”
“This could mean you lose 10 to 20 percent of the value due to fees.”
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