The pound has passed the two-dollar tourist rate mark making US holidays and shopping trips cheaper than ever.

The exchange rate puts the pound at its strongest against the dollar since September 1992, and is expected to encourage record numbers of holidaymakers to cross the Atlantic.

Travel agents have reported a 30 per cent rise in bookings for American holidays, as the pound has strengthened against the dollar, and industry analysts predict it could rise further.

The Association of British Travel Agents said that it was expecting a further surge in demand for trips to the US. A spokesman said: “Last time the pound was particularly strong we saw a massive increase in visitors even though we never got near to $2.

“It’s never been cheaper to get to America in the first place. Now with the weakness of the dollar the flights for US travellers become less attractive. The airlines need to fill those seats, so they will have to drop their prices even more.”

Shoppers flying to New York can take advantage of the $2 rate to snap up bargains unheard of in the British high street. An 80GB iPod in New York can be bought for $379 including tax, roughly £190, compared with £239 in Britain.

It is not just visitors to the US who will benefit. Many countries, including Hong Kong and Cuba, peg their currencies to the dollar, and will be similarly affected.

Those thinking of taking advantage of the favourable exchange rate with a shopping trip to the US should be mindful of the following:

- Customs officials at UK airports request that returning Britons declare any goods purchased from outside the EU that are valued at over £145, to pay duty on them. The regulations that dictate the rate of duty are complex, but expect to pay a third to a quarter of the value of the goods. You must produce sales receipts for declared goods.

- Upon return from outside the EU, travellers are permitted to bring back a litre of spirits, two litres of wine and 200 cigarettes (or 100 cigarillos or 50 cigars or 250g of tobacco), 60ml of perfume and 250ml of eau de toilette, in addition to the £145 worth of other gifts and souvenirs.

- Customs officials are on alert when flights arrive from popular shopping destinations such as New York and Dubai, and are also trained to spot new watches, bags and jewellery, among other items; as well as knowing the tricks, such as cutting labels and tags out of new clothes and dumping receipts and shopping bags.

- Current hand luggage regulations dictate that no liquids over 100ml can be carried as cabin luggage, so shoppers must be prepared to pack into hold luggage any cosmetics, eau de toilette or drinks that come in containers larger than 100ml.

- Sales tax in the US varies from state to state but is an average 5 per cent, which is added at the till and not on the price tag.

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