Sterling tumbles to three-year low as selling continues

Aggressive selling of sterling following last week's guidance on rates from the Bank of England has taken the pound to its lowest level in three years versus the dollar in trading today.

The pound was trading down by almost 1% at $1.4822 by mid-afternoon, breaching previous lows to leave it at levels not seen since June 2010. Sterling has tumbled from $1.53 in the past week after new Bank governor Mark Carney and colleagues indicated interest rates would be on hold for longer than markets were anticipating. With signs the US is recovering more quickly - and may start to wind up QE - boosting the dollar, the pound's fall has been sharp. Traders are anticipating the currency has some way further fall before it bottoms out, particularly after disappointing UK data tod...