GBP To Euro: Pound To Drops To 85 Cents At UK Airports
It's hard to save up for anything these days. Jobs seem to be harder than ever to come by, and when you get one, all your wage has to go on existing. It's pretty tough. Well, today you'll be happy to know that whatever money you do have is worth less than it has been for nearly three years. In fact, the pound plunged at UK airports with £1 worth a tiny 85-euro cents on Tuesday
The cause of the nosedive seems to be due to mounting fears of Boris Johnson's aggressive stance on a no deal Brexit.
Sterling was 0.5% lower against the US dollar at 1.216, having fallen as low as 1.212 at one stage.
The pound was also 0.5% lower against the euro at 1.09. But, worryingly, UK airports are selling the currency at a rate of just 0.85 euros.
Despite it feeling like we've been in a never-ending recession, prices for British travellers were actually at a two-year high at the peak of the holiday season. However, it would appear that our financial climate can be as wonky as our weather as experts warn that sterling is now on track for its worst month since October 2016, having dropped more than 4% since the end of June.
So, if you're planning to take a trip abroad anytime soon then Brexit has probably cost you a few pints before you've even arrived at your hotel.
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Fiona Cincotta, a senior market analyst at City Index said that investors are worried about the hard no-deal Brexit which could potentially drag the economy into chaos.
She said: "Boris Johnson's new Cabinet did little to alleviate those fears, taking a hard line with Europe on forthcoming negotiations."
Despite Johnson stating that he will "go the extra thousand miles" to secure a deal, it would appear that the investors have as much faith in him as a big percentage of the British public as the markets remain jittery at best.
Boris Johnson was named Prime Minister last week, winning comfortably against Jeremy Hunt. One of his promises during his bid for leadership was a promise to deliver Brexit on 31 October, without or without a deal from the EU.
In a statement, a group of lawmakers said: "The (group) notes that recent statements, not least those made during the Conservative Party leadership campaign, have greatly increased the risk of a disorderly exit of the UK. "A no-deal exit would be economically very damaging, even if such damage would not be inflicted equally on both parties."
If you were looking for a good news piece, this isn't it. If you do want a bit of escapism from the doom and gloom of the UK, here's an article about a man in Australia who got bitten by a shark.
Featured Image Credit: PA