Sterling takes another pounding

The euro hit new highs against sterling today as the two currencies edged closer to parity. The euro hit 90.06 pence sterling this lunchtime, the latest in a series of record highs against the UK pound in recent days. It later fell back to trade at 89.35 pence this evening. Some holidaymakers travelling to Europe from Britain are reportedly already receiving less than one euro for their pound at bureaux de change, where commission is charged. It is thought short-selling - where investors sell assets such as shares or currencies in the hope of buying them back later at a lower price and pocketing the difference - is also behind the pound's slide.