The pound traded against the dollar today at its lowest in two years at $1.8514.
Sterling has also suffered further against the Euro which traded at 79.35 pence.
“Sterling is being hit on all sides at the moment with a broad-based dollar rebound and the realisation that the UK economy is facing a very difficult period,” said Geraldine Concagh, economist at AIB Group Treasury in Dublin.
The signs are that the dollar has seen the worst of it’s decline in the money market, but the news is not so good for the UK pound, at least in the short term.
Rising unemployment, slowing wage growth, falling house prices, large trade and budget deficits, and slowing economic growth against the highest level of inflation in years have put the pound under immense pressure.
Financial experts are predicting that the Bank Of England will step in to reduce interest rates by the end of this year.
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