Sterling collapses to 5-year low against the US Dollar

Commenting on Sterling's increasing weakness against the US Dollar, Stephen Heath, Chief Executive at FairFX.com, said: "The US Dollar has continued putting pressure on the Pound, sinking Sterling to a five year low. This morning the Pound smashed through the $1.7 level and has traded down to 1.6775.

"It has been a dreadful couple of week for the Pound in which we have seen it losing over eight per cent, or 14 cents, against the Dollar as the aggressive selling continues.

"The UK and Iceland have clashed over who should compensate British savers with money locked in accounts at Kaupthing and Landsbanki. It seems fears over the UK's exposure to the Iceland banking system has helped to drive the Pound down to this five year low."

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