Good news for many Britons in France as pound reaches one-year high against euro
Sterling conversions go further as stability brings benefits
The UK pound sterling has reached a one-year high against the euro, bringing good news to Britons in France.
On Wednesday, the pound closed some 0.3% higher against the euro, reaching 85.05 pence to €1 – a rate not seen since June 2025.
Against the US dollar, sterling increased by 0.4%.
It came after UK media outlets including i and Financial Times reported that current Home Secretary Shabana Mahmood is set to be appointed as the country’s new chancellor.
Newly-elected MP Andy Burnham (former mayor of Greater Manchester) is expected to be appointed as the party’s new leader on Friday – and with that the role of UK prime minister on Monday – and is looking to build his new cabinet.
Ms Mahmood is seen as a fiscally conservative appointment compared to other leading candidate Ed Miliband, bringing relief to markets and propping up support for sterling.
Alongside the cabinet reshuffle, a positive outlook for the UK’s economy, anticipated interest rate rises, and the expectation of stronger UK-EU ties following a major summit have contributed to the pound’s increase in value.
The summit, originally scheduled for July 22, 2026, has been pushed back due to the resignation of Sir Keir Starmer as Prime Minister. Officials are hoping to hold it after the summer.
Major topics will be “agri-food, linking emissions trading systems and a youth-mobility scheme,” said the UK’s EU relations minister Nick Thomas-Symonds to Reuters.
Pound goes further
A strong pound brings benefits to both holidaymakers and those residents in France whose income is derived from sterling (for example, by receiving UK pensions, rental income, UK company dividends, etc).
Purchasing power for Britons using the pound is increased, as each pound exchanged buys more euros than previously.
For holidaymakers, this means sterling exchanged into euros for an upcoming visit will also go further.
For those looking to move, it can also provide a cost-of-living boost compared to UK prices.
Although a strong pound spread across a sustained period can lead to a significant increase in disposable income, experts warn against keeping all of your investments tied to the UK, and suggest diversifying your portfolio protects against sudden economic downturns for one currency.
