Going on holiday next month to Spain - is it best to get currency now or hold for a better rate?

Question

I've been keeping an eye on the best euro rates, and noticed that it seems to be fluctuating between 1.21 and 1.24 over the past few rates.

The best rate available today is 1.2269 Euros to the pound, with the rate going up to just over 1.23 if ordered 21 days in advance, which would leave enough time.

Is this likely to be the best rate I'd get, or should I hold on a couple of weeks? Is it likely to drop any further than the low that it's on already?

Thanks in advance.

Answer 1

hang on a minute while I polish off my crystal ball LOL

Seriously, it's always a good idea to get your foreign currency in advance, then you know exactly what you have to spend..

Answer 2

Get it now. The rate will fall after July 10Th and Early August due to the N. Ireland holidays and then the English hols.

Answer 3

If I knew which way the exchange rate will go I could make a fortune.

That said the exchange rate has been fairly stable recently. You might as well leave your cash in an interest bearing account until you travel.

Get yourself an account that does not charge for using an ATM abroad. It's OK to have several accounts at different banks.

Ian M

Answer 4

hold for better rate, and get the currency there

Answer 5

A perfectly sensible question to ask. It might go up and it might go down. Alas, if you would ask, when you flip a coin, if it is going to be heads or tails, the answer would be roughly the same: you have a 50% chance that it will be heads and a 50 % chance that it will be tails. It is almost like gambling.

When it comes to exchange, and it would seem you will be selling pounds, I have learned that rates go up (become more expensive) during peak holiday times, so that this plead in favor of buying now. But then you risk the euro to fluctuate downwards, which is tantamount to saying that you will have overpaid your euros.

To make it a little more vexing, I have also learned that when you are at your destination, the country you visit will be eager to buy foreign notes and will therefore offer a slightly better rate than the country in which you live.

So the best way to approach this is to spread the risk. Buy a little before you leave, as you said, 21 days in advance, but not more than 50% of the amount you think you will need. Buy the rest locally.

Hope this puts some perspective to the question. Enjoy that holiday.

Answer 6

Use an ATM when you get there.  The amount you get ripped off buying Euros in the UK makes any fluctuations in the exchange rate seem trivial.

Answer 7

change half before you go i reconmend 2 week's before you go and take half of your cash there as there is a better rate abroad i alway's do half'y half just incase u cant change it if it ever happen's but most time u can

Answer 8

Wait and do not get it at the airport in Spain.  Find a bank once you are there - you will get the best exchange rates that way.