Sterling’s slump continued today as the UK currency moved a step closer to parity against the euro.
At its low, one pound bought €1.118 - its weakest-ever performance against the single European currency. One euro would have purchased 89.39 pence this morning.
The tourist rate for UK travellers closed the gap still further, with some bureaux de changes offering €1.07 to the pound. American Express at Heathrow said tourists on their way to Europe today would pay £95.85 for 100, including the cost of commission.
The Post Office, which offers a commission-free service, said its cheapest rate today would mean customers could expect to buy €1.089 with £1 today.
Sterling has sunk around 20 per cent against the euro in the past year as UK interest rates fall from a peak of 5.75 per cent to 2 per cent.
The weaker currency should be a boost to UK exporters but the economic woes of major export markets such as the US and Europe is hitting demand.
PA