Sterling has plunged to its lowest level in nearly 18 months against the dollar amid renewed fears about the health of the British economy and growing conviction that the next move in UK interest rates will be down, The Times reports.
The pound slid 0.8% to $1.9270 in currency markets this morning as traders reacted to a record monthly fall in house prices and continued concerns about consumer spending. Economists added that with little chance of an interest rate hike in the coming months the pound could slide to $.190 by the end of the year and 80p against the Euro. COLLAPSING GROWTH IN Germany, Italy and Spain has forced the European Central Bank to abandon its hawkish policy stance, preparing the way for likely rate cuts in coming months, according to The Telegraph. Jean-Claude Trichet, the ECB's president, said ...
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