Pound is booming and just in time for our summer holidays. Now for the bad news

A strong currency is the sign of a strong nation, by and large. Throughout the 19th century, when the British Empire was at its zenith, the redoubtable British pound typically bought five flimsy US dollars. In 1940, the UK and US agreed to peg the pound to dollar rate at $4.03. Nine years later, with Britain struggling to grow after the war, it was re-pegged at $2.80. Thereafter, the pound and UK went into decline together. Last September, during the disastrous, short-lived era of Liz Truss, sterling almost fell to parity with the dollar, with one pound buying just $1.07. Thankfully we escaped that national humiliation, and things now look a little brighter. Sterling is up more than 20 percent against the greenback since then, trading at just over $1.30 as I write this. The pound has also rebounded almost five percent against the euro and more than 15 percent against the Aussie dollar and Japanese yen. Now traders are backing the pound to go even higher, which is great news for anybody jetting off for their summer holidays as their spending money will travel further. Those flying to US hotspots like Florida will reap most rewards, as they’ll have an extra $22 of spending money for every £100 they convert, compared to last September. Brits bound for the continent will get an extra €5 for every £100, enough for a couple of extra drinks. It’s not life changing, but it’s a rare slither of good news.