The pound to euro exchange rate has suffered one of its worst weeks in more than a decade, with sterling plummeting to its lowest position against the common currency on Wednesday. However, there was some positive news this morning in the form of a two percent increase against the euro.
- Coronavirus in Spain: FCO warn Britons to leave country
Though it may be modest, the boost to the pound helped undo more than half of the losses it experienced on Wednesday.
The pound is currently trading at a rate of 1.0893 against the euro according to Bloomberg at the time of writing.
Michael Brown, Currency Expert at Caxton FX spoke exclusively to Express.co.uk.
He said: “Sterling advanced by more than two percent against the euro on Thursday, despite the BoE announcing another emergency rate cut, as investors continued to monitor the progress of the coronavirus pandemic.
“The pound’s gain saw it erase more than half of the losses seen on Wednesday.
“Today, the aforementioned pandemic will remain the centre of attention, as traders continue to assess the economic impact that the virus will have.”
It came even despite the Bank of England’s announcement that it would make another emergency interest rate cut to benefit society during the challenging times of the coronavirus pandemic.
At present people across the globe are being forced into their homes in a battle against the spread of the virus, meaning the loss of jobs and income for many. The government has implemented a series of emergency measures to try and aid those suffering as a result of the crisis.
WATCH: Cars park on airport runway to stop EU flights landing [VIDEO]
Cabin crew: Packing this could boost your inflight experience [INSIDER]
Coronavirus Dubai: FCO issues urgent new travel warning for UAE [WARNING]
Prime Minister Boris Johnson the government’s plan to pump back money into areas of society in need, including pubs and restaurants suffering less business at this time.
Jeremy Thomson Cook, Chief Economist at Equals said: “Another day, another rate cut by the Bank of England. The base rate is now at the lowest level we think the Bank of England is prepared to go to and with that will come a not so unsubtle hand-off of the stimulus baton to the Treasury.”
“Lower rates and additional quantitative easing can keep markets satisfied and borrowing costs for both businesses and the government down but unless money is forced into the hands of small businesses soon, then it will be for nothing; they are the ones laying off staff due to a liquidity shock.”
Meanwhile, the Foreign and Commonwealth Office maintains its advice for Britons to avoid “all nonessential travel for the next 30 days.”
- Coronavirus travel: Britons ‘on their own’ says expert
The move comes as countries across the globe shut down borders, often with little or no warning.
Secretary of State Dominic Raab assured this was largely to stop Britons becoming stranded, rather than due to the virus itself.
He said:“I should emphasise this decision is being taken based on the domestic measures being introduced into the UK alongside the border and a range of other restrictions which are being taken by countries right around the world.
“The speed and the range of these measures across other countries is unprecedented some of those decisions are being made without notice.
“In some countries or particularly cases where there haven’t yet been any reported cases of COVID-19 local authorities are nonetheless imposing restrictions on movement, and again doing so with little or sometimes no notice whatsoever.
“In light of those circumstances, we want to reduce the risk of leaving vulnerable British travellers or tourists stranded overseas.”
However, there are still those that will need to exchange currency.
The Post Office continues to offer travel money exchanges.
Today The Post Office is offering €1.0216 for amounts of £400 or more, and €1.0418 for amounts of £1,000 or more.
A Post Office Travel Money spokesperson said: “Any holidaymakers who are booked to travel can claim a full refund on foreign currency purchased with the Post Office if their holiday is cancelled. Customers need to submit both their currency purchase and sell receipts and evidence their holiday was cancelled to qualify.
“Loading currency onto our Travel Money Card is another way to safeguard cash as this can be held over for future travel.”
Source: Read Full Article