HOW LOW CAN YOU GO?: British pound falls to EIGHT-YEAR low against Euro with some holidaymakers getting 87 cents per pound

LAST UPDATED: 24 Aug, 2017 @ 14:38
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THE pound Sterling fell to a fresh eight-year low against the Euro yesterday with an official rate of just over €1.08.

For some British holidaymakers abroad, it has meant receiving as little as 87 cents for one pound.

It comes after solid data out of the bloc laid bare the diverging performances of the UK and the European Union’s wider economy.

Travellers exchanging money at Southampton Airport’s Moneycorp branch today were getting just 87 cents for every pound – representing the worst rate since the financial crisis.

Since the Brexit referendum result last June, the pound has tumbled more than 15% against the euro.

Economists at UniCredit wrote in a note to clients this morning that the ‘upward trend’ in the euro’s value against the pound ‘is showing no signs of slowing down’.

Meanwhile, strategists at Morgan Stanley wrote in a note yesterday that the pound’s weakness ‘is no longer inspiring foreign buyers to come into the market’.

They said that buying the euro against the pound is the most sensible trade at the moment.

Last week strategists at the US bank said that the pound would be worth less than the euro on official exchanges by early next year.

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