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 today.
Mark Deans, dealing manager at Moneycorp, told Investment Week the price could drop to $1.45 in the near term.
"Factory output and trade data was negative today, and given numbers in the US on Friday were great and stimulus may end, $1.45 is the new target," he said.
Others have said the fall in cable will go even further, with Morgan Stanley today suggesting it plunges to $1.41 by year-end.
Ian Stannard, head of European foreign-exchange strategy at Morgan Stanley, told Bloomberg the pound will drop to $1.45 by the end of the third quarter and to $1.41 by the end of 2013, a move which would leave it at a four-and-a-half-year low.
Three years at Wells Fargo
Effective from 9 December 2019
One firm with permission suspensions left
Continuing the Architas education series for clients.
Needs to apply for authorisation