Sterling hits two-year low on recession fears

The pound is now worth less than $1.84 after falling more than a cent in early trading on Tuesday, its weakest level in over two years. The dollar also gained against the euro, reaching a six-month high on growing concerns that the Eurozone might go into recession. Slowing economic growth in the UK, which saw a stagnant economy in the second quarter of 2008, has raised expectations the Bank of England’s Monetary Policy Committee might cut interest rates, though it has emphasised its concerns about inflation. The relative weakness of the pound may come as some relief to UK manufacturers, ...