The pound slumped to a fresh record low this morning, bringing more bad news for British holidaymakers as it pushes up the cost of continental breaks.

Ahead of the Bank of England\’s decision on interest rates at lunchtime, sterling fell to 80.27p against the euro in early trading, after hitting 80p for the first time yesterday.

For someone whose income is denominated in either dollars or sterling (dependent upon source) but who lives in euros (like me!) this is of course not good news.

On the other hand, that sterling mortgage to buy a house in Portugal is looking pretty good.

Ho hum, swings and roundabouts, eh?

1 thought on “Oh Joy!”

  1. Do you think parity is possible? It seems so if you consider the cross rates – the pound could fall to $1.65, and the euro could rise to $1.65.

    Would be a lot of holidaymaking in Dorset if that happened.

    Tim adds: Dunno: I try really hard not to think about exchange rates like that. Once you do you start trying to manage them, speculate on them, and that just isn’t sensible for an individual. Especially when in business I have to deal with the rouble (now a petro-currency) as well. We’ve had one product move from $40 a kilo to $110 a kilo over the past 18 months or so. We are, naturally, trying to switch production from Russia to the US.

Leave a Reply

Your email address will not be published. Required fields are marked *