Friday, 23 January 2009

Sterling / Dollar hits 23 year low

The pound has lost further ground against the dollar today, sinking to a fresh 23-year low as data showed the UK economy shrank at its fastest pace since 1980 and confirmed Britain had fallen into recession for the first time in nearly 20 years.

UK gross domestic product shrank 1.5 percent in the three months to December, more than forecasts for a 1.2 percent decline. It was the largest quarterly drop since the second quarter of 1980.

Sterling has already dropped about eight percent against the dollar since the start of the week, amid widespread concerns about the British banking system and the government's growing debt.

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