Since the lockdown started and international travel restrictions were imposed, currency sales understandably have fallen to their lowest levels for many years. It would be easy to imagine that this would have a negative effect on rates across the entire range of world currencies but actually that hasn’t been the case.
At compareholidaymoney we take a snapshot of the exchange rate for over 65 currencies every day and use this data to power our exchange rate history graphs. Our data is different because we log retail prices rather than lower interbank rates which most people don’t have access to. We can see the short and long term trends for each currency and the recent data has proved interesting.
Euro exchange rate
The euro is by far the most popular currency sold in the UK. The lowest rate we recorded in the last 3 years was 1.065 on August 11 2019; this was mainly due to Brexit. In February 2020, a month before Coronavirus struck it was at it’s highest for 3 years at 1.194 on February 16th. It then dropped rapidly when the pandemic started and then surprisingly rallied again to 1.162 in mid-April. Since then it has steadily fallen and at the end of July is around 1.09.
However, looking back over the last 3 years the lowest rates for the euro during the year have always been in August and the highs around April so the trend this year is no different despite the pandemic.
US dollar exchange rate
US dollars are always a popular currency and with travel to the US advised against by the UK and US Government how much has this affected exchange rates? Again the pattern is very similar and we can see from our data that some of the lowest rates in each year for the last 3 years occurred during August: Surprising, given this is peak holiday month.
For the last 30 days the exchange rate for USD has actually improved by nearly 5%. Maybe better value will boost demand?
Winners and losers
Looking back over the last few months, since mid-March the table shows the currencies that have improved the most.
Among them we can see United Arab Emirates dirham up over 20% and the currencies of Turkey, Morocco and Egypt all improving between 15 – 19%.
At the bottom of the list, the following table shows the currencies that have not done so well. These include the usually popular currencies of Sweden, Norway, Australia and New Zealand.
As always we can’t really draw any conclusions on this other than exchange rates are extremely unpredictable. Nobody could ever advise you when to buy your currency with any accuracy. At the moment international travel is difficult and some countries such as America are effectively out of bounds to most holidaymakers. If you see the currency of a country you are planning to visit on an all time high, do you buy it in advance? That is a question we get asked all the time and the answer is always the same. Even if a currency is at a high point it could still rise further as well as fall so the best advice is to hedge your bets and buy some when you think it’s great value and some before you travel. Otherwise you can leave it in the lap of the Gods and hopefully when you do take your next foreign holiday the exchange rate is kind to you!
Rest assured that when the time comes for you to buy your travel money we will always show you the best deals.Stay Informed
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