Holidays are cheaper by the pound

Improved currency rates are making European cities more affordable for British tourists, according to latest figures.

The pound is now stronger than it was a year ago against the euro and also against non-euro currencies such as the Hungarian forint, the Turkish lira and the Polish zloty, a survey by Post Office Travel Money showed.

Of 23 city-break destinations across Europe and the USA, the Latvian capital of Riga offers the best value in terms of travel, one-night accommodation, meals, drinks and sightseeing.

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Holiday costs in Riga, total £121.47. This compares with the most-expensive European city surveyed, Stockholm, (£298.27) and with the highest-priced destination, New York, (£331.33).

Meanwhile, another study shows British holidaymakers fork out fees of around £260 million a year for simply using overseas ATM.

Around 67 per cent of Britons visit cashpoints during trips abroad, the poll by travel agent www.sunshine.co.uk found.

Holidaymakers use the cashpoints an average of five times per trip, the survey revealed.