The exchange rate has sunk to €1.080 after briefly climbing to €1.1083 yesterday.
Sterling has suffered after damming comments made by the European Union’s chief Brexit negotiator Michel Barnier.
UK Brexit Secretary David Davis was welcomed to Brussels yesterday for the third round of monthly face-to-face talks.
But Mr Barnier stoked up tensions by suggesting Britain was not taking the Brexit process seriously.
He sounded dismissive towards policy papers the UK has published this month setting out details and options on issues surrounding Britain’s actual departure from the EU and future relations with the bloc.
The EU Commission envoy claimed Britain’s position on key divorce issues remained unclear and he was concerned about slow progress.
Brexit talks have already been fraught with frustration on both sides and the exchange rate has faltered as a consequence.
TorFX currency analyst Laura Parsons said: “As the UK public basked in the novelty of a sunny bank holiday, the GBP/EUR exchange rate dropped to €1.07 as the third round of Brexit talks got off to a less-than-positive start.
“The EU’s chief Brexit negotiator Michel Barnier was slammed for comments which were viewed as an ‘ill-judged and unhelpful’ attack on the UK, leaving relations with Brussels on uneasier ground than ever.”
FairFX reported that the pound has fallen three per cent against the euro since the start of the summer holidays a month ago, meaning tourists are getting €32 fewer for every £1,000 they exchange.
Tourists who wait until they are about to board their flight face even worse deals, with some airports offering walk-up rates of just €0.95 – less than €1 per pound.
FairFX chief executive Ian Strafford-Taylor said: “Holidaymakers looking to make the most of their spending money have had a tricky summer.
“At a time when going on holiday is at its most expensive because of the school holidays, families have had the added financial squeeze of a volatile pound to contend with.”
