The European currency is at an all-time high against the pound, putting holidaymakers on stricter budgets as they vacation on the ContinentTens of millions of British people will experience their own credit crunch on holiday this year as the soaring value of the euro forces them to pay more for everything from the price of a coffee in a Parisian cafe to a hotel room in Barcelona. As currency traders pushed the European single currency to a record high against the pound yesterday, holidaymakers were coming to terms with the fact they now have almost a fifth less spending power on the Continent than a year ago.
The 17 per cent fall since last February has come about as the euro has powered ahead on the strength of its member economies, while the pound has slumped, most recently because of the knock-on effects of the sub-prime collapse in the US.
The euro's new high of 80p, reached in early trading yesterday, came after the International Monetary Fund warned that UK growth would only hit 1.6 per cent this year, compared with the Government's claim of up to 2.25 per cent.
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