Holiday makers 'are aware of foreign exchange rates'

Holidaymakers are aware that the current foreign exchange rates mean certain destinations, such as Brazil, may be more affordable, it has been suggested.

Brazil's currency has suffered recently because of the problems in United States of America as they usually do a lot of trade with them, explained Suren Thiru, economist at the Halifax.

Due to this, the Brazilian real has fallen slightly against the pound, he continued.

Mr Thiru added that the change in value of sterling has made Brits more aware of currency exchange rates.

"A lot of traditional destinations in Europe like Spain and France have become more expensive than they were a year ago."

According to research from Halifax Financial Services earlier this month, tourists visiting Brazil over the next month are likely to enjoy a good exchange rate as the pound can purchase 15 per cent more Brazilian real in December than six months previously.

It also found that some European countries not using the euro have become more affordable because of the fall of some currencies against the pound.