Pound under pressure; record low against euro

The pound fell to a record low against the euro and, at some exchange outlets, travellers heading to Europe from the UK were getting less than one euro to the pound. The currency remains under pressure as Britain’s economic outlook remains grim. However, it is bargain time for those visiting the UK from the Eurozone. The rate has also given UK exports a boost.

Will Butler Adams, managing director of Brompton Bicycle, said: “ The weakening of the pound against the euro is great. We export 70 percent of our products, 35 percent to Europe. So this makes our bike more competitive.”

The pound’s recent battering has led some to suggest that it is time for Britain to join the euro. Not so says Britain’s Minister for Europe, Caroline Flint: “I think it would be wrong to suggest that the financial crisis in itself means that we should move into the euro. I don’t think there is any evidence for that. We are living in exceptional, unique, times.” When the euro was introduced nine years ago it was worth 71 pence. Now it is hovering at around 90 pence.More about: Euro, Financial Crisis, Pound sterling

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