Towards the end of last week, the Pound tumbled to a three-week low against the Euro and a five-week low against the US Dollar, spelling trouble for Britons travelling overseas. According to a foreign exchange expert, the decline can be attributed to two key factors.

Tony Redondo, founder of Newquay-based Cosmos Currency Exchange, said: “Firstly, markets are worried that Britain is heading towards a period of political instability. Secondly, they are worried about how the UK economy will cope with an expected rise in inflation.

“Though inflation fell to 2.8% today, it is expected to rise, potentially sharply, in the months ahead as the impact of rising oil prices due to the conflict in the Middle East hits the UK economy in full. If markets believe higher inflation makes UK gilts a not–so-safe bet, that will apply further downward pressure on Sterling.”

Tony warned that the weakened Pound was hitting holidaymakers travelling abroad hard, with their currency now “plummeting” against the Euro and Dollar – a situation that “could get worse in the weeks and months ahead”.

However, he noted that a struggling domestic economy and the persistent weakness of Sterling was prompting an increasing number of businesses to fundamentally reassess how and where they market their services.

Tony said: “If they’re anything, the UK’s businesses are resilient and proving they can adapt. During 2026 to date, we’ve seen a sharp rise in UK businesses moving away from difficult domestic conditions and looking for customers overseas.

“Rather than having all their eggs in one UK economic basket, a growing percentage of UK firms are now marketing and selling their products and services online to customers in Europe, America, Canada, Australia and even Singapore and Hong Kong.

“If there’s one silver lining to the weak UK economy, it’s that many traditionally domestic UK small businesses have become international ones, as they cast their nets ever wider in search of customers and profit.

“The ability to ply your trade internationally has never been easier and it can massively boost a company’s bottom line.”