Sterling plummets to 13-year low vs aussie dollar

Sterling plummeted to a thirteen-year low of 1.9503 against the aussie yesterday as investors were encouraged into high risk currencies.

• The pound has fallen by 2.2% in just four days against the Australian dollar as risk sentiment was buoyed by strengthening global equity prices, many of which hit their highest points of the year yesterday.
  
• However, during Asian trading hours the Australian dollar dipped as struggling stocks curbed demand for riskier currencies, with both the Nikkei 225 and the Shanghai Composite falling.
  
• One analyst has said that UK financials continue to outperform Australian resource stocks, which could point to near term gains for sterling against the aussie.
  
• In trading so far this morning, the pound has begun to cap some of its sharp losses as investors continue to recoil from weak Asian stock prices.