'Get your US dollars now'

Well that's one frozen squib of an Easter out of the way for another year. Except it's not a year this time. It's way more than that because thankfully Easter 2009 doesn't crop up until the middle of April, where it is supposed to be - with its accompanying warmer weather and school holidays.

I don't know about you but by Easter Monday we found ourselves huddled around a radiator listening to the wireless. And in particular to Money Box Live on Radio 4, which was dealing - spitefully - with holidays. Or what we would have been doing had Easter been at its proper time.

The programme concluded, as is fairly inevitable, that anyone going on holiday should have travel insurance and if you go away often you should consider an annual policy. But there was one point that is worth reiterating here. If you're going to the USA or to a country where the dollar is used you should 'get your dollars now'. It's a valid claim.

One key factor to the US/£ exchange rate is the difference between our interest rates and as it stands it's looking as good as it's going to get. US rates are extremely low and though they could get lower so could ours so the difference is probably as wide as it will go. Besides, the pound is weakening against the euro and other major currencies and could quite easily fall considerably against the dollar. The prospects aren't great.

You can learn about how exchange rates work here

See today's tourist exchange rates

Which currency to take? Click on Currency Calculator and Currency recommendations

Find an annual travel insurance policy from £38

Cost of using plastic abroad soars

Comments

[Monevator]

It's not a terrible idea to convert pounds into dollars right now, but keep in mind that similar advice a couple of years ago would have cost you as the dollar has kept falling.

Probably makes most sense to work out how many dollars you need for whatever purpose (spending money / buying an iPod touch / buying a Florida condo) and then biting the bullet when you have the right pounds to get sufficient dollars, rather than speculating too much.

I've met currency traders. Even they admit it's an impossible art to get it 100% right, so us holiday makers haven't really got a hope. :)