There are winners and losers from a weaker pound. A weaker currency makes exporters more competitive, along with companies who earn their revenues overseas.
The recent growth in the value of the FTSE 100 of the UK’s largest companies has been largely attributed to the falling currency, as many of the largest British companies earn revenues overseas and report higher profits when the Pound Sterling is weaker. Investors can benefit from a falling pound if they are exposed to exporters and large-cap stocks.
"Many of the largest British companies earn revenues overseas and report higher profits when the Pound Sterling is weaker."
A falling pound is also likely to boost some property values, which [in effect] become cheaper for foreign investors. The already inflated London and South East residential-property market is most likely to benefit from a falling pound, as valuations will appear more attractive to wealthy overseas buyers. The falling pound could also attract more foreign investment in commercial property in all regions of the UK, so investors who hold this asset class could benefit.
If you’re going on holiday, the main way to hedge your bets against further falls in the pound is to buy holiday currency now. Some providers offer guaranteed buy-back deals on holiday cash, so for a small margin you could sell your currency back to them should the pound rise sharply before you go away. If the pound had fallen, though, you would have locked in the currency purchase at current rates, saving some money.