Northern Ireland news

Weakness of the pound against dollar and euro set to impact holidaymakers

Following more than two years of Covid-19 restrictions hampering holidays abroad, many travellers are set to feel the squeeze on finances even further

HOLIDAYMAKERS will see their spending money stretching less this summer with the weakness of the pound against the dollar and the euro.

Following more than two years of Covid-19 restrictions hampering holidays abroad, many travellers are set to feel the squeeze on finances even further.

It comes after the pound fell to its lowest level against the dollar since the onset of the Covid-19 pandemic earlier this week, amid growing concern over the strength of the UK economy.

Sterling dropped by more than a cent against the dollar to trade below $1.20 earlier this week - its lowest level since the start of the pandemic in March 2020.

Versus the euro, the pound fell more than one per cent to about 86.81p, its lowest level since May last year.

Jane Foley, head of foreign exchange strategy at Rabobank, said the "pound remains a very vulnerable currency".

"If you're going to the Eurozone or the United States, you're going to be able to purchase less," she told the BBC.

"When we look at the dollar, it's very strong, so holidaymakers going to the US are really going to see the weakness."

She added: "Sterling's been on the backfoot for several years, so to some extent this weakness is already expected".

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