"Risk in appetite" boosts pound

Britons making foreign exchange transactions are likely to find their money goes further in the US and eurozone thanks to a strengthening pound.

Figures published by the Herald recently revealed that sterling grew significantly against the dollar and euro.

Expats were able to get $1.60 for £1, while those living on the continent could receive one euro for 87.8p.

This is a turnaround from currency rates in January when the pound plummeted to $1.32 and in December when the euro and sterling reached near parity.

Adam Cole, senior currency strategist at Royal Bank of Canada, suggested to the paper that the pound may be strengthening due to an increase in shareholders taking chances with investments.

"I don't think you can tie it down to anything. It is just the general increase in risk appetite," he said.

"Global stocks are doing better again and sterling, being perceived as a relatively risky asset, is being dragged up by that."

Meanwhile, Expedia recently reported that Brits are increasingly likely to make foreign exchange transactions in long-haul destinations due to cheaper living costs.

Click here to find out how much you can save with HiFX's Foreign Exchange services.

By Linsey Summers.