The declining value of sterling against the euro is set to raise hopes among supporters of the single currency that the economic conditions for British membership are falling into place.

The pound fell to a 32-month low against the euro yesterday as it was hit by declining support for the dollar amid fears about the strength of the US recovery.

But a poll from Barclays Capital found 49 per cent of voters would vote against Britain joining the euro even if the government recommended it. Thirty six per cent favoured joining the euro.

Manufacturers and exporters also welcomed the pound's new weakness.

The vice president of the European parliament, David Martin, has called on the government to hold a referendum on the euro quickly - in a bid to restore public confidence in the government.