Insurers reappraise forex risk

The continued sovereign debt crisis of industrialised countries has been the spur for heightened volatility in exchange rates, with the eurozone’s woes putting particular pressure on the single currency. The euro has plummeted nearly 10% against sterling this year, with E1 currently buying 82p and the near-parity in December 2008 a distant memory. Although the US has its own fiscal problems, in June the euro breached the $1.20 barrier for the first time since March 2006, having traded at $1.50