Where your pound will go further
Sterling has strengthened over the past 12 months, and that's good news if you're heading on holiday to these places soon.
In recent months, the economies of emerging markets have been hit by a series of shockwaves that have sent their currencies diving southwards. The good news is that the British pound is one of a few currencies that have gained in strength since the start of the year. As a result, it now buys a great deal more in several foreign locations popular with British holidaymakers.
To show you how strong the pound has been this year, I asked the experts at currency firm Caxton FX how sterling has performed against major currencies. Here's what its specialists found.
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Trouble for Turkey
Partly due to a growing corruption scandal involving Turkey's Prime Minister Recep Tayyip Erdogan, the Turkish lira has been hit for six of late. Having hit record lows in January, the Turkish government lifted its currency by raising interest rates. As a result, one pound is worth 3.696 Turkish lira, up 3.8% in 2014.
Far more impressive is the pound's rise over the past year, during which it has soared by more than a third (36%). In other words, your pound will buy a great deal more in Istanbul, Bodrum and other Turkish destinations this year!
South Africa goes south
The South African rand is another currency to be hit hard in 2014. A series of strikes at some of the world’s biggest mines is expected to dent exports, sending the rand southwards. At the end of 2013, one pound bought 17.34 rand; today it buys 17.88, up 3.1%.
That said, the pound has rocketed against the rand over the past 12 months, rising a whopping 31.1% in one year. That means nearly a third more spending money in Johannesburg, Durban and Cape Town this year.
The Rupee's rout
Thanks to our historic links, Britain has a strong history of exchange in goods and people with India. Lately, the pound has risen modestly against the rupee, rising 0.9% since the end of 2013.
Once again, the really impressive rise against the rupee has taken place over the past year, during which time sterling has shot up by 25%, rising from 82.59 rupees to 103.33 rupees today.
Japanese yen turns jumpy
Thanks to the aggressive monetary policies of reforming Japanese PM Shinzo Abe, the Japanese Yen has weakened considerably against other major currencies. At the end of 2013, one pound bought 174.37 Yen, versus 170.24 as I write. Therefore, the pound has weakened by almost 2.4% against the Yen in 2014.
On the other hand, sterling has soared against the Yen over the past year. Twelve months ago, one pound bought a mere 140.78 Yen, so a pound is worth more than 20% more in Yen than it was 12 months ago.
The dollar dips
Today, one pound will buy you around $1.67 in the international money markets. At the end of 2013, it bought $1.656, so the pound has risen by a mere 0.8% – a move far too small to get excited about.
Then again, one pound was worth less than $1.49 in early July 2013. So sterling has bounced back very strongly since last summer and is now worth 12% more than it was in mid-2013.
Czech mate
The pound has gained a tidy 11.8% against the bouncing Czech koruna over the past year, giving stags and hens heading for Prague over a tenth more spending money.
The euro slips
At the end of 2013, one pound bought €1.205. Today, it is worth €1.21, which is a tiny rise of 0.4%.
However, the pound has climbed steeply against the euro since the end of July, when it was worth $1.142. So, since last summer, £1 now gets you 6% more for your money when shopping or spending in the 18-nation eurozone (which now includes Latvia, which joined the currency union at the end of 2013).
Three other crashing currencies
It's been agony for Argentina of late, with the pound shooting up by almost three-quarters (73.6%) against the Argentine peso in just 12 months. A year ago, one pound bought fewer than 7.6 pesos; now it brings in nearly 13.2 pesos.
Meanwhile, Indonesia is in a state, with sterling leaping a third (32.9%) against the rupiah in 12 months. A year ago, one pound bought 14,553 rupiah; today it buys 19,348, or 4,795 more rupiah per pound.
In summary, our British currency is worth a great deal more than it was last summer. As a result, you're going to get more sun, sea and sand for less in many places this year, which is great news for hard-pressed British holidaymakers!
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