Pound sees biggest one-day fall against euro since 2010

Sterling coins and notes The pound has fallen for a number of reasons

Related Stories

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.

More on This Story

Related Stories

More Business stories

RSS

Features & Analysis

  • Martin Gardner as a young manThink hard

    Was this man the world's greatest puzzle master?


  • Carved pumpkinTrick or treat

    What did a riot at a pumpkin festival show about race in US?


  • A woman puts on a surgical mask during hospital Ebola training in Alabama.'Dark continent'

    Is prejudice fuelling Ebola outbreak hysteria in the US?


  • Oscar de la Renta and Oprah WinfreyIn pictures

    The life and work of Oscar de la Renta


Elsewhere on the BBC

  • FutureThe future is now

    Get the latest updates and biggest ideas from BBC Future’s World-Changing Ideas Summit

Programmes

  • Smart glassesClick Watch

    Smart spectacles go into battle – the prototypes looking to take on Google Glass

BBC © 2014 The BBC is not responsible for the content of external sites. Read more.

This page is best viewed in an up-to-date web browser with style sheets (CSS) enabled. While you will be able to view the content of this page in your current browser, you will not be able to get the full visual experience. Please consider upgrading your browser software or enabling style sheets (CSS) if you are able to do so.