The pound has hit a nine-month low against the euro, increasing the cost of holidaying in some of the most popular destinations.
Sterling has also slipped against the US dollar, falling to below $1.29 for the first time in almost a year.
Analysts said the slide was due to fears that Britain will exit the EU without a trade deal with its European partners.
It follows comments by Bank of England governor Mark Carney that the chances of a no-deal Brexit were ‘uncomfortably high’.
Experts have warned that the pound could dip further unless Britain’s Brexit negotiations with the EU take a more positive turn, and unless there are further increases in interest rates in the UK following the quarter point rise last week.
