Sterling hit its highest level against the euro for almost two years over the weekend, reaching €1.20.
Currency provider FairFX said the rate was €1.2036 on Monday (January 31), a rise of 1% since the start of the year when the rate was €1.1899, and 8% since January 1, 2021, when the rate stood at €1.1106.
According to the Thisismoney.co.uk website, the rise was due to “mounting speculation” that the Bank of England will increase interest on Thursday.
Commenting on the fact that the pound has reached a pre-pandemic level for the first time, Jack Mitchell, head of travel money at FairFX, said: “This means that those exchanging cash for trips away in the coming weeks will be getting £77 more for every £1,000 exchanged than January last year.
“This is a cause for optimism as we look to the year ahead and think about planning holidays.
“Combined with testing requirements being scrapped for vaccinated travellers in England and Scotland from February 11, Brits can feel cautiously hopeful that the coming months are looking much more ‘normal’ for travel.
“As this is the strongest we’ve seen rates since February 2020, it could be worth considering locking in currency rates on a pre-paid currency cards for any upcoming trips.”