Overview

• The pound traded near $1.3746 on Thursday, its strongest level since October 2021.
• Sterling’s surge reflects a weakening US dollar and market expectations of upcoming Federal Reserve rate cuts.
• Some analysts forecast the pound could reach $1.40 within the next 12 months, while others caution gains may be limited.
• Holidaymakers are urged to secure current exchange rates and use comparison websites to avoid airport fees that can exceed 20%.
• Debit, prepaid and specialist travel cards from providers such as Currensea, Revolut and Wise offer competitive rates and fee-free spending abroad.