Budget drives sterling yet lower

Commenting on the fall of Sterling following yesterday's Budget announcement, Stephen Heath, Chief Executive of FairFX said: "Despite the optimism felt last week as the Dollar hit $1.50 to the Pound, Sterling had a sharp sell-off yesterday afternoon as Darling failed to impress investors with the budget.

"We have seen Sterling plunge from $1.4650 to £1, to a low of $1.44 to £1, and a freefall from €1.1320 to £1 to just €1.1135 to £1, all in the course of one afternoon. In one of the bleakest Budgets for decades, the Chancellor once again cut growth forecasts and confirmed borrowing will increase. The Treasury's deficit will run to £703 billion by April 2010, compared with the previous forecast made in November last year of £434 billion - all of which will make the Pound seem even less attractive."