Sterling dived in value against the euro yesterday, hitting an all time low of 1.1890. It has also fallen to a six-year low in dollar terms. A combination of unemployment figures at their highest for 10 years, and worries over deflation have prompted investors to sell sterling.
The pound is below $1.50 for the first time since July 2002. Holidays in the Euro zone will now cost approximately 20% more than a year ago.
Buying a EUR500,000 house in France at the end of 2007 would have cost £354,600; today the sterling price would be £420,520.
See the FT Adviser which argues that the recession could result in a parity between the euro and sterling by the end of 2009
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Dawn Chorus: A Blue Plaque for Marc Bolan, holidaying in the Caribbean with Francis Ford Coppola and a history of the National Gallery in 25 picturesPlus the best of the property pages, and how the railways will save the countryside.
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Game, set, match: 12 of the world’s most beautiful tennis courtsFrom Italy to Indonesia, when it comes to hotel amenities, a picturesque tennis court will always trump a 24-hour gym. So, before you book your next holiday, take a look at our pick of the 12 best.
