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Tuesday, May 8, 2012

Pound Soars As Crisis-Hit Euro Weakens

Sterling has hit a near three-and-a-half year high against the euro in the wake of new political uncertainties in the eurozone, paving the way for cheaper holidays for UK tourists.

The pound has risen against the single currency to levels not seen since autumn 2008 after elections in France and Greece at the weekend cast doubt on the viability of austerity plans aimed at tackling the eurozone debt crisis.

It prompted leading foreign exchange outlets, including Travelex, to sell euros at a rate of about 1.20 to the pound for the first time in years, meaning UK travellers to eurozone countries can expect to get far more for their money.

Analysts said the pound could extend its gains even further if politicians failed to form a new Greek government following an election result that called into question the terms of the country's international bailout. Read More