Sterling falls to 2 and a half year low against the rand following British budget

The pound fell sharply across the board this afternoon, and dropped to a 2 and a half year low against the South African rand, as the market responded to the bleak economic outlook for the UK detailed in Chancellor Alistair Darling’s budget report. The pound fell as low as 12.9796 for first time since August 2006 as market sentiment turned against sterling.