Add your Article
Is this the end of Sterling ?
By manager@ni247.com Published: 06/02/2009
Before the euro the punt was stable at 1.20 punts to the pound .When the euro was introduced it was 1.67 euro to the pound.Now 8 years later the the current rate is 1.16 euro to the pound .
Although the pound and euro are not fixed to one another,
there are often long periods where they move together,
although since the middle of 2006 this correlation has weakened.
Inflation concerns in the UK led the Bank of England to hike
interest rates in late 2006 and during 2007, causing sterling to rise
to its highest rate against the euro since January 2003.
This has had a knock on effect versus other major currencies, and the pound
hit a 15-year high against the US dollar on 18 April 2007, having gone
through the US$2 level for the first time since 1992 the day before.
Since then the pound continued to strengthen against the dollar,
as have many other world currencies, and hit a 26-year high of $2.11610
on 7 November 2007.
However, since late 2007 the pound began to weaken
considerably against the euro, albeit less sharply than the dollar,
falling below the €1.20 border for the first time in November 2008
Have your say send your comment to manager@ni247.com
