The Euro has taken a beating from currency speculators in the past day in reaction to the Russian retaliation against sanctions imposed on it.
Late last week, the Russian government banned food imports from the EU after the EU, together with the US, levied sanctions on Russia on account of the crisis in Ukraine.
The trade war has set the Euro on a downward spiral, falling to $1.3337 not far from a nine-month low of $1.3331 struck on Aug. 6. The euro however seems to have found support at $1.3349.
The euro’s losses saw the dollar edge up. The dollar index rose 0.1 percent to 81.572.
However, the real winner has been the pound. The pound last week witnessed a sell-off in the market as the consensus was that the pound was overpriced.
Since the decline of the Euro, in the last 24 hours, the pound has begun to appreciate again. This is been helped by the comments of the Governor of the Bank of England to raise rates when necessary, as opposed to the comments of the ECB President to keep rates low and keep the Euro cheapened.
Travellers to the Euro Zone wishing to take advantage of the geopolitical tension and trade wars should travel with the British pounds or dollars, and convert to Euro as rates become even more favourable.
