The currency blog

By
Daily Mail Reporter

Sliding: The pound is now worth €1.10
Millions of Britons face another hike in the cost of travel today after the pound fell to a five-month low against the euro. The exchange rate dropped to 1.1016 euros per pound after the Bank of England warned that the UK’s record debt is putting off investors. It means items purchased in the 22 countries which use the single currency will now cost 6 per cent more than they did last month. Until last month, sterling’s value had been slowly rising since it sunk to an exchange rate of nearly one to one last December. In August it was worth 1.17 euros. But since then the pound has lost value virtually every day – renewing fears it will once again hit parity with the euro by Christmas. The fall in the value of the pound against the euro has sparked renewed fears the two currencies will hit parity – or becomes less valuable. ‘We were here last October and we headed down to parity against the euro by Christmas. I think we are going the same way again,’ Mark O’Sullivan from Currencies Direct told the BBC. Read the rest of this entry »