Posted on June 12, 2009 by Fiona Hilliard

British holidaymakers look set to get more for their pound this summer as the currency continues to strengthen against the Euro.

Yesterday, sterling shone on the currency markets, reaching its highest level against the euro this year. 

A pound bought €1.17, up from €1.16 the previous day.  It rose two cents against the dollar, fetching $1.65.

Traders welcomed this progress as an indicator that Britain’s recession is past its worst.

The pound had dropped in value against the euro and dollar in the past week following concerns over a possible challenge to Gordon Brown’s leadership.

This week’s increase is good news for Brits heading abroad, although the current level is a long way from regaining last year’s position, when the pound hovered above €1.26.

Still, it’s a welcome relief for currency-buying tourists heading to Spain, France, Portugal and Italy over the coming months.