Pound Falls To Another Low Against Dollar
The pound has continued to fall against the dollar, hitting a level last seen in the early days of the Coalition.
It fell to $1.4868 on Monday, after slipping below $1.49 for the first time in more than two and a half years on Friday.
The last time it was at this level was around the time of the General Election in 2010, and during the recession of 2008/2009.
The slide highlights the differing fortunes of two of the world's largest economies.
Last week, the US economy was given a boost when its jobless rate fell to 7.7% - the lowest since December 2008.
But concerns that the UK is heading for a triple dip recession remain, following a string of weak economic data and the downgrading of its credit rating by Moody's.
Sterling has been one of the worst performing major currencies this year, falling by around 8.5% against the dollar and 7% against the euro to date.
It also lost ground against the euro on Monday, which was up 0.3% against sterling at 87.34p.
Market analyst Nawaz Ali from Western Union said the falls come as investors prepare themselves for next week's Budget.
"The overriding concern is that the Government is giving little indication that it will take its foot off austerity which is hurting economic growth," he said.
He said speculation is also mounting that Chancellor George Osborne may announce a review of the Bank of England's remit.
"Investors are eyeing a change to the bank's inflation targeting, which may give Governor King and the incoming Mark Carney more room to explore new monetary stimulus," he added.
More quantitative easing is likely to hit sterling further because it increases its supply and drives its exchange value lower.
The currency movements came the day before industrial and manufacturing data for January, both of which are expected to show little or no growth over the month.
what do you think?
Dont know where they get the facts from no growth every one I speak to say that they ste busy and expanding with large investments
All these bankers still live the very good life when the rest of us battle to make ends meet very week do lets see them hit hard like the rest of us
Bankers got us into this mess.With the Lib/Dems joining up with the beaten Tories most of the front bench are involved with in Banking . How did we get our selves in this mess with bankers now running Britain.
Quantitative ( printing money ) easing didn't work for Robert Mugabe's Zimbabwe, but the great minds in government think that it will work for Great Britain, it won't.
Millionaires are running this country. You wont see any good happen for the economy until their pockets begin to feel the pinch...and when that will happen...well, your guess is as good as mine.