The one million British pensioners who live abroad will be hit hard by the plummeting value of the pound, which is likely to fall even further, one leading investment bank has warned.
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By. Harry Wallop, Consumer Affairs Editor
Last Updated: 12:42PM GMT 18 Nov 2008
Pensioners and holidaymakers hit by pound falling to 23-year lows Photo: GETTYJP Morgan forecasts that sterling (GBP) will drop a further 13 per cent against the dollar (USD) and 8 per cent versus the euro (EUR), as foreign investors shy away from investing in the currency.
The pound will hit a low of $1.28, a level not seen since 1985, and sink to a record low of 92p per euro in early 2009, the bank forecast.
If the pound, which has already fallen strongly this year, slides further it will hit millions of holidaymakers who will see the price of foreign trips increase.
It will also hit one million expatriate pensioners in Europe, who receive their pensions in sterling, but have to pay their living costs in foreign currency.
Sources :
Telegraph.co.uk : Pensioners and holidaymakers hit by pound falling to 23-year lows
