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27th Jul 2019

Sterling exchange rate in July has dropped to record low against Euro and Dollar

Rory Cashin

Pound to euro

It is believed the decline has been caused by fears of a No Deal exit from the EU.

In July 2015, £1 was worth €1.44.

In July 2019, £1 is now worth €1.11.

At the start of the weekend, it was revealed that the Sterling had dropped to its lowest rate for any July since the Euro was introduced in 1999.

Additionally, £1 is now worth $1.24, marking the lowest July exchange rate in over 50 years (according to the Daily Mail), and the lowest singular day since 2017 (as per the Financial Times).

There represents a huge increase in costs for UK holidaymakers heading abroad, as the declining rates represent a massive hike in comparative prices.

On the flipside, European and American holidaymakers heading to the UK will find their currency getting them a lot further than it normally would.

It is believed that this drop is directly related to an impending No Deal Brexit, with the FT reporting that “Newly-appointed UK prime Minister Boris Johnson had a reportedly tense conversation with German Chancellor Angela Merkel on Friday, reiterating his wishes that the Irish backstop be scrapped.”

The EU’s chief negotiator Michelle Barnier said on Thursday the terms on which Boris Johnson wants to negotiate a new agreement were unacceptable.

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