Author, Andrew Gibson
Last Updated on August 1st, 2024
Below you will find out the highs, lows & averages of the Pound to Euro rate, its full history, and how to achieve a better rate.
What is the highest pound-to-euro rate ever?
The highest Pound to Euro rate ever was €1.752 on 3rd May 2000.
This was following the Euro’s launch in 1999, it performed poorly relative to the Pound as investors had concerns about whether it would be a short-lived experiment. Since, the Euro has gained more strength with the current rate over the last 6 months being at around €1.158.
The lowest pound-to-euro rate ever
The lowest Pound to Euro rate ever was €1.02 on 30th December 2008.
This was during the global financial crisis at which point the UK banking system was fragile and required government support to stave off collapse.
A plunge in the Pound in September 2022 saw the GBP/EUR rate dip down to €1.06.
That’s a lot lower than it got following Brexit.
What is the average pound-to-euro rate?
The Pound to Euro rate has averaged €1.33 over its full history since January 1999.
Therefore at current levels, the Pound sits below the average rate since inception.
Over the past decade, the Pound has traded at much lower levels than the decade before.
In the past 10 years, the average GBP/EUR rate has been €1.20.
Brexit Effect on Pound to Euro
Following the Brexit referendum result, the Pound dropped sharply in value against the Euro.
The Pound fell 16% against the Euro in the 4 months following the Brexit referendum, including 6% on the actual day of the result.
The rate has yet to rebound to pre-Brexit levels.
For the last few years, the Pound to Euro rate has spent most of the time in a range between €1.10 – €1.20, although it has briefly traded outside this range on a few occasions.
Will the Pound ever recover?
The Pound to Euro rate was €1.30 before the Brexit referendum. It hasn’t been back to those levels since.
In recent years, the economies of the UK and EU have barely grown at all. Higher interest rates have been needed to tame inflation, but at the same time they have hurt economic growth.
Logically, the UK would need to economically outperform the EU for the Pound to stage a big recovery. There hasn’t been much evidence of that since Brexit.
Why Pound to Euro rates you see often ‘fake’
You can easily get a Pound to Euro rate off the internet these days.
Websites like XE, FX Street, Oanda, and Daily FX, offer live Pound to Euro rates to 5 decimal places.
Even Google automatically gives you a rate now (albeit to only 2 decimal places).
But here’s the problem…
Most of the Pound to Euro rates shown online are not customer rates.
What you are seeing is something called an ‘interbank rate’.
Customer rates are different.
As the name implies, an interbank rate is a rate used by one bank to trade with another bank.
It is like a wholesale rate.
Even large corporations, who buy and sell currencies in the billions, don’t trade at interbank rates.
If you just want a rough idea of the GBP to Euro rate, then by all means, use interbank rates as a yardstick.
However, if you want to convert Pounds into Euros (real money), interbank rates can be very misleading.
Here’s the sneaky bit…
A lot of the websites that show ‘fake rates’ are using them as a hook to lure in customers.
They dangle a teaser rate, then provide a link to a money transfer company.
But when you go to convert your money, you get a different rate.
What can you do about it?
My advice is simple…
If you need to transfer Pounds to Euros, get a genuine quote directly from a money transfer specialist.
Using a real Pound to Euro rate will allow you to budget more effectively and avoid any unexpected shocks later on.
To get our latest rate, please request a quote below.
Pound to Euro graph (with the ups and downs explained)
Pound to Euro – its 20-year history in a nutshell
- The GBP/EUR rate started in 1999 at just above the €1.40 level.
- For its first few years, the Pound gained against the Euro as there were doubts over the Euro’s credibility.
- Within a year of the Euros launch, the value of the Pound shot up to €1.752 – which remains an all-time high today!
- By 2003, the Pound was back down to the launch rate of €1.40.
- From 2003-2007, the GBP to EUR rate was fairly stable. It hovered between €1.40 – €1.50.
- During the global financial crisis of 2007/8, the Pound nosedived as the UK government stepped in to prevent a collapse of the British banking system.
- In late December 2008, the Pound hit an all-time low of €1.02.
- From 2013-2015, the Euro fell heavily as debt problems emerged with the ‘PIGS’ (Portugal, Greece, Spain & Italy). The future viability of the EU was questioned.
- In February 2016, the Brexit referendum was announced. The Pound began another steep descent.
- On the day of the ‘shock’ result in June 2016, the Pound suffered its biggest ever one-day fall against the Euro of 6.02%.
- Since the Brexit vote, the Pound had been clawing its way back up against the Euro (until Coronavirus triggered another sell-off).
- In 2022, the Pound got hit again as high inflation and political instability dented confidence.
On the move? … Here’s a 3-minute video summary
Can you trust Pound to Euro forecasts? (Hint: No)
I’m just going to come out and say it: I don’t trust most exchange rate forecasts.
Most are just publicity stunts or downright nonsense.
Don’t get me wrong; I understand why people are interested in exchange rate forecasts.
No one wants to look silly and exchange their money at the wrong time.
But that doesn’t mean what you find online is reliable or accurate.
The truth is most forecasts are a simple extrapolation of the current exchange rate with a tweak here and there.
But as my old boss would say “To the left is history, to the right is mystery”.
I have yet to find anyone with a crystal ball, magic wand, or secret potion that can predict exchange rates in the future.
There are just too many moving parts in currency markets to make some sort of precise forecast.
But I still don’t think you should blindly exchange your money at any rate.
Timing matters.
It’s always worth seeing how the current Pound to Euro rate compares to the highs, lows, and averages shown above.
Getting the best Pound to Euro exchange rate
While I am skeptical about predicting the future, I’m not suggesting you should ignore exchange rate fluctuations.
The exchange rate you achieve is important.
Even small movements in GBP to Euro exchange rate can make a large financial difference to you.
A lot of people underestimate how sensitive currency exchange is to the rate.
Here’s a quick example… Say you’ve bought a property in Spain for €80,000. The GBP/EUR rate is £1 to €1.15. So the price works out to £69,565. However, in the weeks waiting for the transaction to complete, some bad economic news comes out. The GBP/EUR rate drops down to €1.13. This means your property will now cost you £70,796. That small exchange rate fluctuation added an extra £1,200 to the price. Moves in the Pound to Euro rate of 1-2% happen all the time – sometimes within a day. Over several weeks you can see accumulated moves of 3%, 4%, or even 5%. Now you’re talking substantial money. It’s why timing is critical. For more guidance on finding the best exchange rate for international money transfers or travel money, click through to our dedicated post all about the process! You’ve probably seen that the live Pound to Euro rate moves every few seconds. That might be mesmerising for some people. But most people have neither the time nor inclination to watch the Pound to Euro rate all day. And foreign exchange markets may be something you aren’t familiar with or comfortable with. It’s why a money transfer service may be a good option for you. As a money transfer specialist, we watch rates continuously throughout the day. It’s a key part of what we do. We help our clients achieve a better rate by taking advantage of any favourable moves. Getting some guidance on the Pound to Euro exchange rate can help take away ‘rate anxiety’. It doesn’t matter whether you have a few days, weeks, or even months to exchange your money. During this time, there will be ups, downs, and everything in between. The key is to take advantage of those market markets. That’s a fundamental difference in the service we offer. We will understand your situation and help exchange your Pounds into Euros to your best advantage. A bank or online platform won’t look out for you. They just give you access to a platform and leave you to do everything yourself. Key Currency is an independent money transfer specialist. We offer highly competitive Pound to Euro exchange rates, don’t charge you any fees, and provide you with personal service. As a company, we are open and transparent. We don’t hide behind a cute logo or fancy ‘app’. The names, faces, and backgrounds of our expert team of people are shown on our website. We have gained a 5-star rating on the customer review website Trustpilot, based on over 2,000+ reviews. We’re committed to providing a service of the highest integrity and safety. Key Currency is an FCA-regulated Authorised Payment Institution (No. 753989), and as such, all money transfers are conducted through safeguarded client accounts. To compare our pound-to-euro rates, just request a free quote. You are under no obligation to trade with us.
How a money transfer service can help you with the Pound to Euro rate
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