Many holidaymakers heading abroad from the UK can look forward to their pounds stretching further compared with a year ago, research has found.

Sterling is now stronger year-on-year against 80% of the top 40 holiday currencies, Post Office Travel Money found.

Those prepared to travel further could reap the biggest benefits from the strengthening of sterling, the research suggests.

The biggest cash bonus in the study was found to be for those heading for the Dominican Republic, whose peso has plunged 16.7% year-on-year against the pound, giving UK travellers nearly £72 worth of extra peso on a £500 currency transaction.

In Costa Rica, the colon has fallen by 16.6% since February 2016, giving holidaymakers the equivalent of around £71 more for their £500.

Andrew Brown, Post Office head of travel money, said: "Every long-haul currency in our top 40 - except for the Malaysian ringgit - has fallen against sterling since last February and, with savvy travellers watching exchange rates carefully, there is good reason to believe that more of them will consider holidaying further afield this year."

The situation is also improving for tourists travelling to the United States and countries whose currencies are pegged to the US dollar.

Holidaymakers visiting "dollar destinations" like St Lucia, Antigua, Barbados, Dubai and Oman as well as the United States can expect their pounds to stretch between 11.5% (Barbados) and 12% (St Lucia and Antigua) further than a year ago, according to the findings.

This will give them up to £53 more cash to spend than a year ago when they change £500 into foreign currency.

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The pound is also up 10% year-on-year against the New Zealand dollar, giving the equivalent of an extra £46 on a £500 exchange compared with a year ago and up 9% or the equivalent of £41 on a £500 exchange against the Australian dollar.

But the position is patchier in Europe. Travellers to eurozone destinations face receiving nearly £20 fewer in euro on a £500 currency transaction than a year ago, the report found.

Meanwhile, the Turkish lira is 16.5% weaker against sterling than in February 2016.

How to get the most for your pound abroad

After a tumultuous year for the pound, which fell heavily against the euro and dollar in June, before regaining some ground, British holidaymakers are being urged to keep a close eye on how currency affects costs before deciding where to travel.

Here are FairFX's tips on getting the best exchange rate you can:

  1. Track currency: Set up a currency tracker which will alert you to good rates.

  2. Lock-in rates: If you know you’re travelling later this year, plan ahead. Pre-load a prepaid currency card to lock in rates and protect yourself from any potential further decline. If you’re happy with the current rate on offer, buy your currency now to guarantee that rate for your future holiday.

  3. Buy wisely: Don’t leave changing your travel money until the last minute. Exchange rates at airports can be over 10% more expensive meaning you could lose £100 of cash for every £1,000 you change.

  4. Stay alert: Once you’re abroad, beware of the double exchange rate dupe. If you let the seller in a shop or restaurant covert the price back into pounds, they can choose their own exchange rate and you’re more likely to be on the less favourable end of the dea

  5. Cards: Debit and credit cards are good backups but beware of ATM and transaction fees as well as what exchange rate you’ll be forced to use. Instead, use a specialist currency card or a card designed for overseas spending.

  6. Always use local currency: If you have the option of paying – or withdrawing cash – in pounds rather than the local currency, always say no. This allows the other party to decide the exchange rate, a process known as Dynamic Currency Conversion, and it’s unlikely the rate will be in your favour.

  7. Different money habits: Check out any travel money anomalies before you travel. In America, for example, you definitely need to remember your PIN – outlets are migrating from swipe & sign to chip & pin so don’t get caught out.