PIMCO warns sterling at risk of 15% fall vs dollar

The pound could fall by as much as 15% against the US dollar from its current level, back to decade-long lows, if Mark Carney moves to devalue the pound via further QE over the next few years, PIMCO has warned.

After breaching highs of $2 to the pound in 2007 and 2008, sterling tumbled below $1.37 in January 2009 - its lowest level for 25 years - as the fallout from the UK's banking crisis reached its peak. Today it trades at $1.51, but PIMCO said it could go much lower from here - and test the lows seen in 2009 - if the ailing UK economy is propped up with more QE. Speaking after PIMCO's annual secular forum held last week, managing director and UK portfolio manager Mike Amey (pictured) said incoming Bank of England Governor Mark Carney would be looking to devalue the pound further when he ...