BRIT tourists could face a money “shock” on their summer hols as sterling slid to a two-year low amid uncertainty over Brexit, experts have warned.
Holidaymakers buying euros at the airport can expect to receive just 98 cents to the pound – down from the summer of 2015 when they could expect €1.32.
Sterling plunged in 2016 after the UK voted to leave the EU and has been volatile since.
Tourist rates are based on trading levels in international markets – which move up and down based in part on traders gambling on the shape of a future deal with the EU.
This week the pound slipped to its lowest value against the dollar for 27 months, and against the euro it is the lowest it’s been this year.
James Hickman from travel money firm FairFX claimed the rate will not get better until Brexit is resolved.
He said: “It will be a big shock for tourists to Europe if they are expecting to get good value this year.
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“All pointers are that we’re in for a rocky road.
“If people are waiting to buy at a better rate I don’t think that’s going to happen.”
He added that sterling could even hit parity against the dollar in the event of a no-deal Brexit.
Tory leadership contenders Boris Johnson and Jeremy Hunt have both said they are prepared to leave without a withdrawal agreement but they fully expect to have a deal in place.
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