Pound down against the dollar and euro as it tumbles to 18-month low
THERE'S more misery for holidaymakers as the value of the pound has plunged to an 18-month low against the dollar and euro.
Those travelling abroad will get less bang for their buck as the UK currency has taken a hit.
The pound fell to its lowest level since November 2020 amid gloomy economic data released this morning.
Retail sales dropped by 1.4% as struggling consumers stopped spending as they grapple with a cost of living crisis.
Inflation has reached a 30-year high, pushing prices up and denting consumer confidence.
Kevin Brown, savings specialist at Scottish Friendly, said: "Many families are now in a difficult position where they must prioritise spending and make severe cutbacks in some areas to ensure they have enough money to get by."
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This morning, the pound to dollar exchange rate slipped below $1.29 for the first time since November 2020, and to €1.19.
It comes amid gloomy global economic growth predictions, and countries across the world struggling with rising costs and supply chain issues.
Market research firm GfK said consumer confidence slumped this month to close to its lowest level since records began nearly 50 years ago.
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And there are fears that worse is set to come, with inflation expected to reach as high as 8% this spring.
Workers have been further hit in recent months as real wages fell by 1%, as salaries failed to keep up with rising inflation.
Bank of England Governor Andrew Bailey said this week that the BoE was walking a tight line between tackling inflation and avoiding recession.
What a weaker pound means for your finances
A fall in the value of sterling is bad news for holidaymakers, who will find they get less travel money at the Foreign Exchange.
If the value of the pound versus the euro is €1.5/£1 then for every £100 you change up, you get €150 euros.
If the pound to euro exchange rate drops to €1.1/£1 then you'll only get €110 for £100 holiday spending money.
That means buying anything abroad seems more expensive, and can impact on what you can afford to do on your holiday.
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