Sterling fell to a 16-month low against the euro and a nine-month low against the US dollar yesterday.

The pound has fallen 5.5% this year against a basket of world currencies – the second worst performance among the world’s major economies behind the Japanese yen.

The slump has pushed up the cost of travelling for Britons to the eurozone and the US.

The pound fell to as low as €1.14 against the single currency and to below $1.53 against the dollar on the foreign exchange markets.

Sterling was trading above €1.23 early this year and at close to €1.29 in July last year – meaning it has fallen 11% in just seven months, the Daily Mail reported.

The slide means that £500 is now worth just €570 compared with €645 last summer when the pound was at a four-year high.

David Swann, an expert at foreign exchange group Travelex, said the latest slump “comes as yet another blow to British holidaymakers”.

He reportedly said: “For those heading to the eurozone, this means they are getting the worst rate since October 2011. This isn’t great news for cash-strapped Brits.”