The pound has had a torrid time of late, its value reached a record low in March - against the Australian and Canadian dollar - after the financial markets feared Britain was heading towards its first minority government since 1974.
In fact, the pound found itself performing badly against all 16 of the most actively traded currencies - including a euro entwined in a number of financially unstable countries.
However, sustained concerns over the Greek crisis and EU bailouts for the struggling nation have led to the currency making headway against its rivals.
What this means for Property
Concern over the declining value of the euro may be the primary worry for investors who have ploughed money into the previously untroubled currency, but for a number of property investors
the news can be translated as a welcome invitation to enter the foreign markets.
Speaking to Overseas Property Professional, Jeremy Cook, chief economist at currency broker World First, explained that the euro was currently overvalued and should begin to move back to its long-term average against the pound and the dollar.
Mr Cook predicted that a further economic shock from somewhere like Spain or Greece could see the pound soar in the coming months. In addition, he claimed many UK buyers were waiting for the pound to rise above €1.20 before spending their money abroad.
According to the Post Office Travel Services, the relative strength of the GBP against the EUR is likely to have a knock-on effect on the location's popularity.
A spokeswoman explained that she expected the destination "to do well in the coming months".
What does the future hold?
Writing for his Economy-News blog last month (April), foreign exchange expert Adam Solomon suggested that although the pound has been enjoying recent success, the volatility and changing sentiment in the foreign exchange market means that it is unlikely that the UK currency will sustain this momentum.
Furthermore, while it is likely that news of a cosy coalition between the Conservatives and the Lib Dems will take the pressure off sterling for a short timeframe, if the currency wants to retain investor confidence, steps need to be taken to reducing the country's deficit.
- Thursday 13 May 2010