Recent research by leading foreign currency provider, International Currency Exchange (ICE), has revealed that, perhaps not surprisingly, the Euro is the favourite currency for UK travellers, followed by the US Dollar. However, other holiday destinations are catching up as UK holidaymakers look for non-European destinations whilst the Euro stays strong against the pound.  The Egyptian Pound comes in third in the data recorded by ICE for January to March 2008, followed by the Hungarian Forint. Making the most of the weak dollar and despite the credit crunch, UK holidaymakers are heading to old favourites, such as the US, as well as exploring new destinations such as Russia and Bahrain.

"Although the Euro is at its strongest against the pound since the Euro introduction (1999), it's still our most popular currency, with many UK holidaymakers heading to European cities for short breaks", explains Andrew Hamilton, Head of Marketing at ICE. "Unsurprisingly, we have also seen record numbers of US dollar transactions since the exchange rate went above $2 for £1. And it's still very popular between $1.90 and $2.00, but not just for people travelling Stateside. Holidaymakers and gap year students heading to places such as Argentina, Mexico, and the Caribbean are often taking a mixture of US Dollars and local currency to make the most of the exchange rate."

Other currencies in the top ten include the Turkish Lira, Thai Baht and the Australian and Canadian Dollar. The Chinese Renminbi just squeezes in at number 10 the impending Beijing Olympic Games don't seem to have pushed it any further up the chart so far, but that could change significantly later in the year.

Hamilton adds, "We are seeing more orders for Eastern European currencies for countries such as Russia, Estonia and Latvia, as holidaymakers start to explore these new tourist destinations which are relatively close to home. And when it comes to more exotic holiday spots, Bahrain, United Arab Emirates and the Philippines currencies are proving popular, as UK travellers explore further afield."

"Wherever they aree going, we advise holidaymakers to buy their foreign currency before they go to ensure they get the best rates and avoid additional charges incurred by getting money from ATMs and using UK credit cards abroad."