Poor foreign exchange rate 'could put holidaymakers off eurozone'

Mark Bodega, director of HiFX, has suggested that tourists might want to avoid taking holidays in Europe due to the poor foreign exchange rate.

Mr Bodega said that "while a week pound might be good for the overall economy" it will only increase costs to tourists "hoping to catch some sun on the continent".

According to the foreign exchange expert, there is around a €100 difference in the amount of money £500 would have bought towards the end of 2008 compared with now.

The euro has recently risen again in the currency markets due to progress with Greece's financial difficulties.

Greece's debt problems had been dragging the single currency down against many of the major tenders as traders worried about the uncertainty of the situation.

Today (March 26th) however, the euro is trading against the pound at about £0.89.

Mr Bodega added that holidaymakers should consider their options carefully when looking at where to take their holidays.

Although the foreign exchange rate has pushed prices up in the eurozone, many countries that use the single currency may still be cheaper than others outside of the zone.

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Posted by Thomas Smith