THE pound has dropped against the Euro after Britain failed to reach an agreement on a Brexit deal with the EU.
Sterling fell to 1.1318 euros today – a decrease of 0.37 per cent compared to yesterday.
The news came after Theresa May dramatically pulled out of a divorce deal after the EU refused to accept her demand to time limit euro judges’ say over EU citizens.
After a day of talks with European Commission President Jean-Claude Juncker, two sticking points remain — how long Euro judges can oversee EU citizens’ rights in the UK, and how to ensure there is no hard border between Northern Ireland and the Republic.
To break the deadlock, The Sun has learned Mrs May offered to align rules and regulations with the EU after Brexit not just in Northern Ireland but across the whole of the UK.
With the value of currency so closely linked to the outcome of the Brexit talks, all eyes will remain firmly fixed on the Brussels negotiations.
Both the UK and the EU’s remaining 27 member states will face “substantial losses” without a deal on Brexit, according to a recent report.
Europe would be clobbered by 1.2million job losses if no agreement were reached, while Britain would take a 4.5 per cent hit to GDP, according to the Centre for Economic Policy Research.
Sterling is down around 13 per cent against the euro and 11 per cent against the dollar compared with before the EU Referendum of June 2016.
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.
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 TravelMoneyMax, 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.
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