Some cheering news for foreign property buyers and holiday makers - the euro is currently at its lowest rate since 2008, with £1 worth €1.27, translating to an exchange of €123 for £100 on the high street.
This time last year Brits looking to exchange their currency were getting rates of €1.10, but with debates still raging about how to implement bank bailouts across the eurozone, the euro has moved firmly in the favour of Brit travellers and property buyers.
Darragh Maher, foreign exchange strategist at HSBC, said: “The pound has strengthened not because people are particularly loving sterling but because people are particularly hating the euro. For the currency markets, it's still this idea of being an ugly contest. Sterling has its flaws and vulnerabilities but at the end of the day it's not the euro. For now that's sufficient reason for it to outperform."
For those looking to move their currency abroad, perhaps for an overseas property purchase, the question now is whether the euro may fall even further. However, many currency strategists believe that further falls may be already have been factored into the current dramatic fall in price in order to avoid constant readjustments.
"Whenever we see exchange rate moves of this scale, there is obviously value; the euro has become cheaper. For the most part, it does make things cheaper for people travelling abroad. The difficulty is, it could offer yet more value next week,” added Maher.
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