Pound at record rate v Euro

UK travellers heading to the Eurozone will get more for their money as Euros are being sold at 1.20 to the Pound for the first time in three and a half years.

Travelex is currently paying 1 euro 20.8 cents per £1 and the Post Office is offering 1 euro 20.7 cents, while some Sainsbury’s stores are reported to be paying 1 euro 21.19 cents.

The single currency began to fall as a result of renewed Eurozone uncertainty following the French and Greek elections.

Newly elected French Socialist president Francois Hollande has pledged to end the severe austerity agenda started by his predecessor Nicolas Sarkozy.

Meanwhile, Greece is struggling to form a government and could face another election after the two main parties in favour of a financial bailout failed to secure a majority.

Almost two thirds of voters rejected the proposed reforms supporting the rescue package, which means the country is once again teetering on the brink of exiting the single currency.

The last time the Euro exchange rate was above €1.20 was back in November 2008.

Chris Towner at foreign currency firm HiFx said he expected the pound to get even stronger.

“Sterling is still undervalued against the euro,” he said. “It should reach 1 euro 27 or 1 euro 28 in the coming months.”