THE value of sterling hit a four-week high against the dollar and euro this morning as ministers pressure Theresa May to delay Article 50.
Yesterday, three “Remain” ministers warned as many as 15 could quit if she failed to commit to doing so.
As a result, Theresa May will today propose to Cabinet that she formally rules out a No Deal Brexit on March 29, opening the door to a delay.
The news led the pound to climb to a new high this morning – at the time of writing, £1 would get you around $1.32.
While against the euro, the pound was up around 0.5 per cent and at roughly €1.16.
The currency also rose last night as the Labour party said it could support a second referendum, and it has caused outrage among Leave voters.
But even though it’s risen in the past few weeks, the pound is still sitting far away from levels seen before the EU referendum, which led it to drop to a 31-year low.
If you’re thinking about buying your holiday money now then make sure you only buy half, to safeguard yourself against further falls or rises.
Michael Brown, senior analyst at currency firm Caxton FX, told The Sun: “Sterling has rallied overnight and now trades at its highest levels in a month against both the dollar and the euro.
“The pound’s gains are a result of markets beginning to price in an extension to the Article 50 negotiating period, with reports this morning that the Prime Minister is set to discuss the matter with Cabinet before laying a motion in the Commons this afternoon.
“Though a delay is simply pushing back the exit date, and doesn’t solve anything itself, markets are taking solace in the fact that such a move would delay a ‘cliff-edge’ no-deal scenario.
“Confirmation of such a delay would likely strengthen the pound further in the near-term, though political headwinds remain including the opposition Labour Party calling for a second Brexit referendum.”
Is now a good time to buy or sell currency?
IF you’re heading off on holiday or have just arrived home and are wondering whether now’s a good time to buy or sell currency. Here’s what you need to know:
Exchange rates are constantly changing and can go up and down because of any number of reasons.
This means it’s almost impossible to even try and time the market, all you can do is make sure you get the best deal when you buy or sell.
Use MoneySavingExpert.com’s Travel Money Maximiser tool to compare rates if you’re taking cash – it’ll tell you where you can buy your cash for less.
To protect yourself against currency price changes, Money Saving Expert Martin Lewis recommends buying a bit now and a bit before you go. He said: “A simple way to guard against currency moves is buy some now, and some just before you go.
“This diminishes the impact of rate moves (good ones as well as bad).”
Also consider a specialist travel credit card, which allows you to spend money abroad without being hit by any fees or hidden charges. For more on travel credit cards you can read our guide here.
And never buy currency at the airport or other ports – it will always cost more.
Use Money Saving Expert’s Travel Money Max tool to compare buy back rates to make sure you’re not ripped off.
It also took a hit against against the Euro and Dollar in July last year after Boris Johnson resigned from the Cabinet.
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