The euro fell against the dollar and the pound today (Monday) following weekend election results in France and Greece
The victory of Francois Hollande in France and a poor performances by pro-bailout parties in Greece – have cast doubt on European austerity plans.
The euro fell as low as $1.295, its lowest since January, and dropped to three-year lows against the pound.
At 11 am today the exchange rates for EUR/GBP were :
1 EUR = 0.806224 GBP 1 GBP = 1.24035 EUR
While the French result was expected, there is still concern about whether Mr Hollande will be able to work as closely with German Chancellor Angela Merkel as Nicolas Sarkozy did.
Mr Hollande stood on a platform of promoting growth rather than concentrating on austerity.
See our page on Euro Sterling Exchange Rates