T he pound has racked up a record 10th straight week of decline against the euro as holidaymakers face a fourth summer feeling the pinch from the currency’s tumble. Sterling is the worst-performing major currency in the last three months as fears of a no deal Brexit rise in the City and investors brace for an interest rate cut at the Bank of England. The pound has taken a tumble against the euro every summer since the EU referendum. During the summer months as holidaymakers flock to European resorts, sterling sank 10pc against the euro in 2016, 5pc in 2017 and 2pc last summer.
Investors fear that the likely victory of Boris Johnson in the Conservative leadership race will ramp up the risk of a disorderly departure from the EU on October 31. The frontrunner has held firm on his stance that he will deliver Brexit “do or die” in just over three months. Although the pound rout three years ago was followed by a recovery, a «similar rebound appears unlikely», Mr Hardman warned. Nomura’s Jordan Rochester believes that the pound could enjoy a brief recovery, boosted by «spending pledges, tax cuts and a mood change thanks to a new leadership».
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