Sterling in biggest freefall ever against dollar

Today has seen Sterling fall to its lowest against the US Dollar for 25 years – hitting $1.35 - and is set to plummet further by the close of markets today, according to foreign currency specialists FC Exchange.

The recent drops in the UK currency is mostly around recent weak economic data about the UK and coupled with the announcement this morning that the UK is officially in a recession, Sterling has floundered against a basket of major currencies, including the Euro.

Nick Fullerton, MD of FC Exchange comments: “This week started off with Sterling at a low and it has now continued to take a pounding to the point that parity is not so far off. This is lowest we’ve seen Sterling fall against the Dollar for a long time and at this moment in time, no-one can tell how the rest of the day and next week will pan out.

“The fact the UK is now officially in a recession will not help us in the long-run. The only way we’ll see a climb against other currencies is if they become weaker, because Sterling has little hope of strengthening anytime soon.”