By Daniel Hunter

Euros are being sold at a rate of 1.20 to the pound for the first time in three years, and are expected to rise to 1.30 in the coming weeks.

The sudden rise is due to further uncertainties in the eurozone following Greek and French elections.

Richard Driver, at Caxton FX, said the pound should rise further in the coming months, with British travellers suddenly getting 10% more for their money than a year ago.

"We've seen sterling climb this year as the european debt crisis has come to a head," he said.

"Sterling has a pretty decent safe-haven status - we think it will reach 1 euro 30 by this autumn."

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