Weaker pound affects purchasing abroad
By UK CreditCards.com
The dramatic weakening of the pound over the past year has made using credit cards abroad more costly, Sainsbury's Finance has said.
According to new currency market analysis from the credit card provider, sterling has weakened by 17% against the dollar over the past 12 months.
This means that a holidaymaker going on their annual US trip will find goods and services 17% more expensive than before. Meanwhile, similar declines were marked by the pound against other currencies, including the South African rand (-15.5%) and the Egyptian pound (-14%).
The euro, used in popular hotspots France, Spain, Italy and Greece, has strengthened by 8% against sterling over the past year. However, some holidaymakers will take heart from the pound having risen by 2% against the Turkish lira.
Foreign investors' fears over the economic prospects of the UK in the credit crunch have been largely responsible for the decline in the national currency's value. Britain's economy is predicted by analysts to contract by around 4% this year, as the full effects of the financial crisis filter through.
Published: 26 June 2009
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