Tourists hit as pound plunges

Oct 26 2008

TOURISTS heading to America will lose out on bargains as the pound plunges against the dollar.

Sterling had been worth around Û2 this year but yesterday its value had plummeted to just Û1.51.

In the past week, the pound has suffered its biggest fall in value against the dollar in 37 years.

Holiday cash of £500 will buy just Û756 - down from around Û1000.

Bob Atkinson, of travelsupermarket.com, said: "The fall in sterling might not hit the top-line cost of a holiday yet but when you get there you'll find your pounds don't go far."

An iPod Nano that retails for Û149 used to cost British shoppers less than £75 but will now cost £98.67.

The Adidas Rod Laver Mid Sneaker in the US is Û70 - but will now cost Brits £46.35 instead of £35.

Adidas Superstar trainers costing Û80 are also soaring in price for tourists, rising to £52.98 from £40.

But the rate will help make British exporters' goods more affordable to US buyers.

MAILFILE

Chancellor Alistair Darling finally admitted on Friday that the country is heading towards recession.

The economy shrank by 0.5 per cent between July and September this year - the biggest decline since 1990.

On Friday the FTSE 100 index of leading shares closed, down five per cent. The pound has fallen to a six-year low against the dollar at Û1.53.

The Euro has hit an all-time low against sterling at 81.95p.

Crude oil prices have fallen below Û65 per barrel amid fears of a global recession.