[size=50:36apfwfe]BBC News

[size=150:36apfwfe]Pound sees biggest one-day fall against euro since 2010

The pound has fallen for a number of reasons

Fitch warns on UK's AAA rating.

The pound has continued to weaken against the euro, seeing its biggest one-day fall in almost three years, on continuing signs that the worst may be over for the eurozone economy.

At one point on Friday, sterling fell 1.8% against the single currency from a day earlier, the largest percentage fall recorded since May 2010.

This meant one pound was worth 1.1473 euros, the lowest since October 2011.

The pound has also been weakened by fears about the UK's AAA credit rating.

This follows after credit rating agency Fitch warned last month that the UK could lose the top rating if the government does not reduce its sovereign debt.

Continuing concerns about the UK economy, which contracted by 0.3% in the final quarter of 2012, have also hit sterling.

Eurozone improvements
At the same time, the eurozone economy is showing more signs of slow recovery, helping to boost confidence in the euro.

Data on Friday showed that while contraction in the eurozone's manufacturing sector had continued in January, the rate of decline had slowed.

In later Friday exchanges, the pound recovered some ground against the euro to stand at 1.15000 euros, 1.5% lower than a day earlier.

The euro also rose strongly against the dollar, hitting a 14-month high, and a 33-month peak against Japan's yen.

This is the one thing that really affects the cost of living for us Brits in BG. It doesn't sound a lot but our cost of living has gone up by 10 pound a week in about a 4 week period. But still a bit higher than 2 years ago.
.

The pound has shown a slight rise today. This rise is the first upward movement for 4 weeks after a fall due to the not very stable Eurozone and the Italian Election result. Lets hope a more stable pound is seen in the very near future.

tonyb60 wrote:

The pound has shown a slight rise today. This rise is the first upward movement for 4 weeks after a fall due to the not very stable Eurozone and the Italian Election result. Lets hope a more stable pound is seen in the very near future.

Let's hope the £ continues to rise, because I am 6% worse off with my pensions. We live in a a changing world but I would appreciate my pension being left alone.