You might get less than €1 for £1 if you’re buying foreign currency in the wake of the hung parliament result.
Sterling took a worrying hit on Friday after the 2017 General Election outcome was revealed.
Investors have been rattled by the uncertainty surrounding the vote, as leaders scramble to form a solid government.
The effect on currency has been highlighted at UK airports, where the pound to euro exchange rate has fallen below parity.
Pound sterling has fallen below parity with the euro at some UK airports
If you were to buy £100 worth of euros at this rate, you’d only get €98.48
Gatwick South Terminal’s Moneycorp branch was selling euros at a rate of 0.98, according to the Independent.
If you were to buy £100 worth of euros at this rate, you’d only get €98.48.
It wasn’t the only airport to drop below parity. Moneycorp at London Stansted dived to 0.96.
Similarly dismal rates were seen against the US dollar and a host of other major world currencies.
At Gatwick’s Moneycorp £100 would only afford you US$110.24 or CAD$136.62.
Pound sterling has been dramatically affected from the result of the General Election
Airport exchange rates are notoriously more expensive than other currency providers.
CEO of currency exchange service WeSwap Jared Jesner said there are two reasons that airport bureaus charge higher fees than others.
He explained: “Firstly, bureaus at the airport have high overheads and fixed costs they need to cover, including staff and premises. Secondly, they know that they’ve got a captive market at the airport, so they can get away with charging more.”
But the pound’s nosedive after last week’s election result of a hung parliament has added fuel to the fire.
Pound sterling is buying less than €1 for £1 at some UK airports
Some experts have forecast the official exchange rate for the pound to euro to reach parity against the euro by the end of 2017.
HSBC analysts David Bloom and Daragh Maher predict a £1 for €1 rate and a similarly discouraging performance against the US dollar.
They said: “There are some signs that the economy is losing traction, notably through slower consumer spending that has driven GDP growth lower.
“We continue to believe GBP-USD will weaken back to 1.20 and EUR-GBP will move to parity by the end of 2017 on the back of political, structural and cyclical pressures.”