Record low Euro brings in the crowds

Posted by admin on 22 December, 2008 under Business news | Read the First Comment

The Pound against the Euro is almost on free-fall and ended last week at an all time low and today is trading yet lower and stands at 1.05435.

The good news for the UK economy on this though is when we see Christmas shoppers from Southern Ireland coming across in their droves to shop in Northern Ireland where shops are offering parity for the Euro. It will also make it cheaper for tourists to come and visit the UK of course, but will obviously make it more expensive for us to travel to Europe.

The lower Euro will also help exporters, as our exports will be that much cheaper, however, the underlying reasons for the fall in Sterling against the Euro are what is more to be worried about. The Government has borrowed heavily to get the country out of the current economic mess and investors are worried that the UK economy will be hit particularly badly and more than most countries over the present financial crisis.

Sterling against the Dollar has fallen over the past two weeks, but not to the same degree and the Euro has strengthened against the US Dollar too, which has not helped Sterling.