Sterling has dropped this morning on the back of news that GDP has contracted, hitting a 31-month low against the dollar and a two-year low against the euro.
Aashna Shroff, personal finance expert at money.co.uk, gives the following tips to protect your hard-earned holiday money against currency fluctuations:
"More bad news for British holidaymakers, with the pound tumbling to a 31-month low against the dollar and a two-year low against the euro.
"For anyone who's heading abroad in August, it's worth taking some steps to protect your travel money against volatility. Even if you're not travelling for a few weeks, it could be worth buying some of your travel money now to mitigate potential currency fluctuations.
"By purchasing some of your currency immediately, if the pound does fall further, you will have benefitted from today's rates. Of course, there is a risk that the pound could go up, but it could give you some peace of mind.
"Additionally, if you're booking a hotel or hiring a car, think about paying in advance where possible. Many operators will give you the option of reserving these services and not paying until you arrive or check-out. However by paying in advance, you will know what the trip will cost you, without any surprises from currency fluctuations.
"If you've already booked a hotel or hire car, then it's worth contacting the operators to see if you can pay now, rather than wait until the end of the hire or at check-out.
"If possible, try and avoid drawing money out of a cash machine whilst overseas. Not only will your pound not go as far as it used to, but you are also likely to be hit with charges for using the ATM.
"You could also be charged for using your credit card abroad, so, if you want to have this option and you have time before you travel, shop around to see if there's a card that will offer you better rates abroad, or consider using a prepaid card."email@example.com