That's 89p for a euro and more like 94p for tourist euros
Some commentators say that the euro itself will fall in the New
Year. One should ask "Fall against what?"
xxxxxxxxxx cs
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BBC ONLINE 11.12.08
Pound in another record euro low


The British pound has continued its sharp decline against the euro,
reaching a new record low of 1.1238 euros on Thursday.
It is at the lowest level since the euro was launched in 1999.
Meanwhile, the pound gained one cent against the US dollar, reaching
$1.4924 in afternoon trading.
The dollar also fell against other currencies, hitting the lowest
level against the euro and the Japanese yen for the past six weeks.
Sterling was pushed lower after figures from the Confederation of
British Industry confirmed a sharp downward trend in manufacturing.
The UK currency is expected to remain under broad selling pressure
amid a grim outlook for the British economy.
POUND STERLING v EURO: 11 December 2008
However, some analysts have expressed doubts that the rise of the
euro against the pound is a sustainable trend, particularly if
European economies also continue to weaken.
"If the eurozone is being perceived to still have rates at
substantially higher levels, then obviously there's a positive rate
spread, but I'm not convinced that its ultimately going to be
positive as the dynamics of the eurozone economy are pretty weak,"
Rabobank markets strategist Jeremy Stretch said.
Interest rates have been cut both in the UK and in the eurozone, but
they remain higher in the 15-member euro currency area.
The Bank of England has made two sharp cuts in rates, bringing them
down to 2%, and many analysts expect more in the pipeline.
Lower interest rates make it less attractive for foreigners to hold
pounds.
A weaker pound is better for the UK exporters but is bad news for
British holidaymakers who plan to go abroad during the Christmas
season, and also makes imported goods more expensive. [It also makes
it much more difficult for Brown-Darling to borrow to fill that
'black hole' -cs]
Meanwhile, the dollar's weakness has been attributed to the growing
difficulties of the auto industry, whose $34bn bail-out is being
negotiated in Congress.
euro against the pound is a sustainable trend, particularly if
European economies also continue to weaken.
"If the eurozone is being perceived to still have rates at
substantially higher levels, then obviously there's a positive rate
spread, but I'm not convinced that its ultimately going to be
positive as the dynamics of the eurozone economy are pretty weak,"
Rabobank markets strategist Jeremy Stretch said.
Interest rates have been cut both in the UK and in the eurozone, but
they remain higher in the 15-member euro currency area.
The Bank of England has made two sharp cuts in rates, bringing them
down to 2%, and many analysts expect more in the pipeline.
Lower interest rates make it less attractive for foreigners to hold
pounds.
A weaker pound is better for the UK exporters but is bad news for
British holidaymakers who plan to go abroad during the Christmas
season, and also makes imported goods more expensive. [It also makes
it much more difficult for Brown-Darling to borrow to fill that
'black hole' -cs]
Meanwhile, the dollar's weakness has been attributed to the growing
difficulties of the auto industry, whose $34bn bail-out is being
negotiated in Congress.
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