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The weakness of the US dollar against the pound on the currency exchange market is becoming a factor in travellers' decisions to take transatlantic holidays, it has been claimed.

Adrian Jacob, trading director for exchange service Currency UK, said that the issue becomes particularly prevalent when a milestone is reached, such as £1 being worth $2.

'When the currency hits the news and people know that the dollar is going to go to $2 to the pound, then people think it's a great trip,' Mr Jacob said.

However, the currency expert explained that America has been an affordable place for Britons to take a holiday for some time.

'Realistically, the States is a much cheaper place than the UK anyway,' he said. 'The reality is that [the exchange rate has] been at $1.90 for the last year…Obviously it's a psychological thing.'

While the economic conditions in the United States have been welcomed by UK travellers, there are fears within the country that it could be on the brink of a recession, with the Federal Reserve recently cutting interest rates from 4.25% to 3.5%.

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