The pound has fallen to its lowest level in more than two years against the euro.

It hit €1.1376 on Tuesday, a level last seen in May 2023, owing to a daily half-per cent decline.

The fall is linked to an FT article in which it is confirmed the Chancellor will need to find at least £31BN in tax rises on November 26 when she announces her budget.

The concern is that the Chancellor won't be able to hit that target, leading to a further deterioration in the UK's finances.

"It is our central view that GBP will continue to edge lower vs the EUR into 2026," says Jane Foley, Senior FX Strategist at Rabobank. "The pound is on the back foot again vs. the single currency."

Those with GBP into EUR payments are welcome to contact our payment desk for advice on how to proceed .

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