Pound still going down

THE run on the pound continued today as sterling headed towards parity with the euro.

Sterling slumped nearly a cent against the single currency to a new all-time low of €1.1211.

The pound was buying even less at the tourist rate with holidaymakers able to buy little more than €1 with £1 at bureaux de change.

Sterling has crashed by more than 25 per cent over the last 18 months and more than 12 per cent since September on fears over the state of the UK economy.

It is bad news for those heading to the continent this winter with everything from hotel rooms in Paris to ski passes in the Alps far more expensive than a year ago.

Investors are dumping the pound in favour of the euro on signs the UK recession will be longer and deeper than on the continent. The euro was trading at 89.01p.