| 2017 | 2016 | |||||||
|
Income statement impact of non-functional currency foreign exchange exposures |
Increase/(decrease) in income £m |
Increase/(decrease) in income £m |
||||||
|
10 cent appreciation of the US Dollar |
76 | 77 | ||||||
|
10 cent appreciation of the Euro |
(5 | ) | 18 | |||||
|
10 yen appreciation of the Yen |
9 | 1 | ||||||
| 2017 | 2016 | |||||||
|
Income statement impact of non-functional currency foreign exchange exposures |
Increase/(decrease)
in income £m |
Increase/(decrease)
in income £m |
||||||
|
10 cent depreciation of the US Dollar |
(66 | ) | (66 | ) | ||||
|
10 cent depreciation of the Euro |
4 | (16 | ) | |||||
|
10 yen depreciation of the Yen |
(8 | ) | (1 | ) | ||||
The equity impact, shown below, for foreign exchange sensitivity relates to derivative and non-derivative financial instruments hedging the Group’s net investments in its European (Euro) foreign operations and cash flow hedges of its foreign exchange exposure arising on Euro denominated coupon payments relating to notes issued under the Group’s European Medium Term Note programme and a number of highly probable forecast transactions denominated in US Dollar.
| 2017 | 2016 | |||||||
|
Equity impact of non-functional currency foreign exchange exposures |
Increase/(decrease) in equity £m |
Increase/(decrease) in equity £m |
||||||
|
10 cent appreciation of the US Dollar |
1 | 11 | ||||||
|
10 cent appreciation of the Euro |
(1,028 | ) | (795 | ) | ||||
| 2017 | 2016 | |||||||
|
Equity impact of non-functional currency foreign exchange exposures |
Increase/(decrease) in equity £m |
Increase/(decrease) in equity £m |
||||||
|
10 cent depreciation of the US Dollar |
(1 | ) | (10 | ) | ||||
|
10 cent depreciation of the Euro |
861 | 670 | ||||||
The tables below present the Group’s sensitivity to a weakening and strengthening of Sterling against the relevant currency based on the composition of net debt as shown in Note 31 adjusted for the effects of foreign exchange derivatives that are not part of net debt but affect future foreign currency cash flows.
| 2017 | 2016 | |||||||
|
Impact of foreign exchange movements on net debt |
(Increase)/decrease in net debt £m |
(Increase)/decrease in net debt £m |
||||||
|
10 cent appreciation of the US Dollar |
(637 | ) | (746 | ) | ||||
|
10 cent appreciation of the Euro |
197 | 190 | ||||||
|
10 yen appreciation of the Yen |
(4 | ) | (11 | ) | ||||
| 2017 | 2016 | |||||||
|
Impact of foreign exchange movements on net debt |
(Increase)/decrease in net debt £m |
(Increase)/decrease in net debt £m |
||||||
|
10 cent depreciation of the US Dollar |
549 | 634 | ||||||
|
10 cent depreciation of the Euro |
(165 | ) | (160 | ) | ||||
|
10 yen depreciation of the Yen |
4 | 10 | ||||||