The pound has reached new highs against the euro in almost a year.
Currently trading at 1.154, the surge follows a steady week when it struggled between 1.147 and 1.148.
The exchange rate has been affected by the European Central Bank’s latest policy meeting.
This saw the euro fall as they discussed the Eurozone inflation future.
It is good news as the pound last saw highs of this level in June 2017 and has struggled to regain that strength since.
The worsening has been put down to the volatile foreign currency markets
The ECB’s concerns over the euro’s strength, which in turn affects inflation and makes it harder to stay close to 2 per cent for the Consumer Price Index.
According to CityAM the stronger euro “could be expected to have a more negative impact on inflation”.
The worsening has been put down to the volatile foreign currency markets, in particular, the pound, which has forgone steady rates.
They will continue to buy bonds of £25.9 billion as they have been doing until September.
If inflation does not just then this may be reconsidered.
Pound to euro: The exchange rate has reached a new high of a year
Currency analyst Laura Parsons from TorFx, commented on the positive news for the pound today.
She told Express.co.uk: “The GBP/EUR exchange rate surged to its best levels in almost a year on Thursday as the euro crumbled following the release of dovish minutes from the European Central Bank’s (ECB) last policy meeting.
“The pound jumped to over €1.150 during the European session.”
She also explained what can be expected for the rest of the week regarding the exchange rate.
Ms Parsons said: “With UK data lacking today we’re not likely to see any significant GBP/EUR movement before the weekend, though the pound might be able to extend gains if Germany’s inflation data is negatively revised.”
Pound to euro: The exchange rate is currently trading at 1.154
Pound to euro: The exchange rate can make it difficult for travellers exchange foreign money
As the UK exchange rate remains unsteady, it can be difficult for British travellers to know when the best time to buy foreign currency is.
One way to save money is to always pay in local currency over sterling.
Previously explained by Martin Lewis on his Money Show Live, by paying with money local to the country, the exchange rate is always better.
The large fees charged to convert it are dictated by the country the traveller is in which is often much higher.
Even the worst UK rates are better than the countries, more often than not.