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  1. ITV Report

Pound slumps to eight-year low against the euro on Brexit uncertainty

  • Video report by ITV News Correspondent Angus Walker

The pound has sunk to an an eight-year low against the euro.

Uncertainty over Brexit in the UK and strong economic data from Europe both contributed to the slump in the British currency.

It was down 0.5% to 1.083 versus the euro as the London market closed - the lowest level since October 2009.

It means that one British pound is worth just €1.08 - and many exchanges are now charging more than a pound for a Euro.

The rate will hit holidaymakers heading abroad for the bank holiday weekend.

It will also prove grim timing for the UK Government as it attempts to reassure citizens over its plans for Brexit.

The pounds has slumped heavily in recent months. Credit: ITV News

The pound dropped rapidly after the referendum vote to leave the EU, before recovering some of the lost ground.

But it has been on a constant slide against the Euro since May, which means it has now lost almost 17% of its value over the last year.

This evening near the Eurostar terminal in central London, 100 Euros was worth £86.

To some extent, uncertainty over Britain's Brexit negotiations has hit confidence in the UK's currency.

And markets are also nervous about the prospect of further political uncertainty, with a possible Conservative leadership battle in Autumn and even the potential for another general election.

The pound was also struggling against the US dollar, down 0.2% at 1.278 ($1.28).