Uncles Comment : What this actually means is that nearly a year ago it was close to £1 for 1 Euro. Now the pound buys 20% more, coupled with the 40% fall in property prices in Bulgaria, it makes this country attractive to investors again.
Euro against pound exchange rate
Fascinating article from the Guardian
sterling has hit a one-year high against the euro.
The euro just fell below the 83p mark for the first time since early January 2011, hitting a low of 82.99p. That means one pound is worth €1.2049.
The word in the foreign exchange markets is that traders are shifting out of the euro and back into "safer assets". This morning's economic data - which strongly suggested that the eurozone is heading into recession - has added to the pressure on the euro.
As Gary Jenkins, analyst at Swordfish Research pointed out this morning:
The most likely scenario is that a lack of growth and the large debt levels in Europe will lead to investors approaching some of the peripheral bond markets as one might approach a hungry lion. That is, very carefully, if at all.
As the graph below shows, it's barely three years since the pound and the euro were almost at parity (€1 reached 98p on 29 December 2008).
Euro against pound exchange rateEven at today's one-year low, the euro is still strong against the pound in historic terms (having traded between 60p and 72p to the pound for most of the last decade, before rising towards near-parity once the financial crisis began).
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