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...
To continue reading this article...
Join Investment Week for free
- Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
- Get ahead of regulatory and technological changes affecting fund management
- Important and breaking news stories selected by the editors delivered straight to your inbox each day
- Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
- Be the first to hear about our extensive events schedule and awards programmes