Sterling has recorded its largest ever one day fall against the euro. The fall came as investors speculated that the advent of the currency increased the chances of Britain ditching the pound.
Economists say the pound must fall in value before Britain can join the euro. Whenever speculation rises that euro entry is more likely it, therefore, tends to push the pound lower.
With many high street chains, airport outlets and even betting shops prepared to accept the new currency, anti-euro campaigners mourned the demise of 12 European national currencies by carrying a coffin to the Bank of England's doors.
Adding fuel to the heated euro debate, Europe minister Mr Peter Hain incensed anti-euro campaigners with comments he made yesterday in which he said that the pound would probably not survive as a parallel currency to the euro.
The latest ICM poll for the Guardiannewspaper showed a solid majority of 58 per cent still opposed joining the euro.
But 62 per cent of those surveyed believe euro membership with the next 10 years is inevitable, suggesting any possible future referendum on joining the euro would be close fought.
Bookmakers William Hill said it was offering odds of 5/6 that the euro would not replace the pound before January 1st, 2009. But it added that it would be happy to take bets in euros at any of its shops throughout the country.