"Winners and losers" in the sterling euro battle identified

As the pound approaches parity in value with the euro, the "winners and losers" have been identified.

Tourism is identified as a winner, with the favourable foreign money exchange meaning that London has not been cheaper for visitors from the continent in at least two decades, an article in the Evening Standard notes.

Meanwhile, many exporting firms have also been identified as benefiting from the fall in sterling as the "competitive advantage" bestowed by the pound's fall has helped them to "keep their heads above water" while many of their key markets are "on their knees".

People who get paid in sterling but who have euro-based outgoings, such as expats living in France and Spain who transfer money abroad, could face a "squeeze", it is suggested.

Finally, the cost of many imported raw materials and goods is set to rise, but it remains "uncertain" how much of the cost is passed on to the consumer, the article concludes.

The UK base rate of interest currently stands at two per cent, after the Bank of England's monetary policy committee elected to reduce the rate earlier this month.