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GBP Hits New Low Against the Euro

Neil Richard Leslie | December 10, 2008

The British sterling has fallen to a new record low against the euro. BBC:

The pound stood at $1.4807 and at 1.1450 euros in London late morning trading.

[...]

At one point, sterling declined to under 1.14 euros. It also touched a new low against a basket of currencies. Interest rates have been cut both in the UK and in the eurozone, but they remain higher in the 15-member euro currency area. The pound was also hit by new data suggesting the UK economy had shrunk by 1% in the three months to November.

[...]

Lower interest rates make it less attractive for foreigners to hold pounds. A weaker pound is better for the UK exporters but is bad news for British holidaymakers who plan to go abroad during the Christmas season, and also makes imported goods more expensive.

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