Pound continues to slide against the euro

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TeamPlayer

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Sterling fell further against the euro this morning as parity between the pound and the single currency edged closer amid continuing concerns about the strength of the British economy.

This morning, €1 cost 87.9p, an increase from yesterday's close of 87.74p and 34.4 per cent off sterling's peak against the single currency in 2000 when one euro was worth 57p.

The strength of the euro against sterling has been boosted by concerns about the state of the UK economy.

The Treasury was last night unable to rule out pumping more money into the economy and the possibility of interest rates hitting zero is becoming increasingly likely.

Economists have warned that the economy could shrink by one per cent this winter as the credit markets freeze, house prices continue to fall and consumers cut spending.

Despite comments from Juergen Stark, an executive board member of the European Central Bank (ECB), admitting that the bank has little room to cut interest rates further after last week's cut, the euro was still up against the pound.

timesonline
 

TeamPlayer

Yellow Belt
From a very personal point of view, I'm ok with the pound sliding against the US dollar, (not necessarily against the Euro though).

I get paid mostly in dollars for the work I do, so the amount of pounds I get when I exchange the dollars is going up much of the time. :D
 

Webmasterserve

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Same here but the slid so far has messed up my things for me considerably, I have a few guys working for me, they are all based abroad and are paid in USD, in January this year, it cost me about £520 to pay the one that earns $1,000 . Last month when I sent his wates, it cost me £720. This is a significant increase if you have to send this kind of money to a few people.
I may have to make some of them redundant if the slid continues :(

I don't pay anyone in Euro, thank god for that, most of this guys has worked for me before Euro came to town.
 

TeamPlayer

Yellow Belt
Yes, must be tough if you are paying people who are in the US, which is the reverse situation to mine.

It's amazing to think that at one time you could get almost 2.5 dollars for a pound.

I heard that a money changing kiosk at one of the aiprot is now selling £1 for 1 Euro
Wow. The TV reports did say that many pundits were predicting parity in a few months time, but now??
 

Webmasterserve

Staff member
Administrator
I saw this post about the possibility of USD being devalued:

A quick dollar devaluation would work wonders for submerged borrowers. Don't kid yourself: It could happen.
What began as government social tinkering--with implied threats to banks and mortgage companies to extend home loans to even the most marginal of borrowers--led to a greed-blinded mortgage banking business and the meltdown we are experiencing today. Now we are asked by the same congressional leadership to go along with taxpayer-funded bailouts of the very banksters who, while making millions, created the mess.

full story
 

TeamPlayer

Yellow Belt
Sterling continued to lose ground against the euro this morning to hit a record low of 94p, as it buckled under the weight of expectations that interest rates would be cut further in the UK.

Charles Bean, the Deputy Governor of the Bank of England, fed the fears over falling borrowing costs when he said zero interest rates in Britain were a possibility and further capital injections may be required in the banking sector.

In early morning trade, the euro hit 93.49p, its highest level since the single currency's introduction in 1999. Sterling tumbled as low as €1.0635.

Timesonline
 
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