The euro inched ever nearer to parity with the pound today, hitting a new record high of 98.03 pence sterling this afternoon.
The euro has been hitting historic highs against the pound on a regular basis in recent weeks as the Bank of England cut interest rates sharply with Britain standing on the verge of recession.
Lower interest rates make a country's currency less attractive to investors.
Sterling has lost around a third of its value against the euro and the dollar over the last year. Two weeks ago the pound crashed through the 90p level against the euro for the first time since the single European currency was launched in 1999.
The euro later fell back to trade at 97.88 pence sterling this evening.
