Pound to euro exchange rate – sterling dives amid speculation interest rate hike will be postponed
The fall came after deputy Bank governor Sir Jon Cunliffe suggested that a rate rise may not be delivered given concerns over Britain's economic forecast
THE pound has continued to rise ahead of a European Council Summit which will debate Brexit talks.
By 8am this morning Sterling had risen in value to 1.1232 euros compared to yesterday at 5pm of 1.1222.
The fall came after deputy Bank governor Sir Jon Cunliffe suggested that a rate rise may not be delivered given concerns over Britain's economic forecast.
Connor Campbell, a financial analyst at SpreadEx, said: "Cunliffe, a deputy governor at the Bank of England, argued that a November rate hike is an 'open question' due to the UK's economic weakness, further undermining the hawkishness the central bank showed over the summer.
"The pound could well be in for a nervy few weeks, then, with the interest rate situation seeming to only get murkier as the November meeting grows closer."
What has happened to the euro conversion rate in the last few months?
Sterling is down 14 per cent against the euro and 11 per cent against the dollar compared with before the EU Referendum of June last year.
For investors, a rate hike is good news, as it means the pound gains more value while it's sat in buyers' bank accounts.
A rise in interest rates can also reflect an increase in general economic confidence, which will increase sterling's relative value on financial markets.
However, analysts think traders may be awaiting signs of better relations in Brexit talks before buying into the pound, with the markets still jittery thanks to the uncertainty involved in the divorce process.
Where is the best place to get euros?
Euros can be bought at supermarkets, the Post Office and currency specialists – but rates vary massively.
The best rates can often be found at specialist online outlets, such as Travelex, which will deliver your cash directly to your home.
Alternatively, FairFX offers currency cards which you can load up with sterling and then spend abroad like a debit card.
Travellers can use comparison sites, like MoneySavingExpert’s , to find the best rate.
If you order in advance and pick up the cash then you’ll most likely get a better rate than if you walk in.
You can also buy last-minute currency at the airport, but expect to be hit with poor rates.
It’s almost always much cheaper to buy your currency before you get to the airport.
The rates you’ll see above are the “spot” currency rate that is traded on the market.
These are different to the rates offered by currency exchange businesses, but changes in the spot rate do have an effect on how much cash you get.
How to get the best holiday money rate
WE spoke with Hannah Maundrell, editor-in-chief at money.co.uk to find out how you can guarantee the best rate when you go on holiday
- Don’t buy cash at the airport – you’ll always be able to beat the rate with a bit of forward planning
- Compare travel money companies online – Factor in delivery costs and choose the option that gives you the most cash to spend on holiday. If you’ve left it until the last minute order online for airport collection so you get the best of both worlds.
- Use comparison tools – MoneySavingExpert’s TravelMoneyMax enables you to compare pick-up and pre-order rates.
- Don’t pay for travel money with a credit card – it’s likely you’ll be charged a cash withdrawal fee which adds to the cost.
- Top up a prepaid card to lock in your rate now – Choose your card and read the T&Cs carefully as some apply hefty fees. WeSwap, FairFX and Caxton FX are all worth checking out.
- Always choose to pay in the local currency rather than sterling – This will help you avoid sneaky exchange fees
